 |
 |
 |
 |
 |
 |
 |
 |
  |
How to Buy and Sell Stocks
When you buy stocks in a company you become part owner in it. This in know as equity investing. When a company performs well, then the value of your stocks increases. When time comes to sell your stock you can turn in a profit if the current market value is higher than what you originally bought the stock for. The stock market is the quickest way to make money, it’s also the quickest way to loose money.
Step 1
Do your research
In order to be a smart investor you need to be familiar with the major stock exchanges. Some big American exchanges include the New York Stock exchange and the NASDAQ. You should also be familiar with good companies to invest in. The more you know about a company the better you can predict its financial future.
Step 2
Understand Stocks and the Stock Market
In order to be a good investor you need to be familiar with how stocks work. A company’s stock value is determined by what people are willing to pay for it. No one organization or individual determines the price of the stock. If people don’t have confidence in a company than people will pay less for the stock. Therefore making the stock price fall. If people are willing to pay more for a company, with potential, than that stock will rise in value.
|
|---|
Step 3
Know your investment goals
You should have a set plan in your mind. Do you want money now? Do you want to build a portfolio until you retire? Are you short term or long term? when making your decision you should be familiar with both growth stocks and income stocks.
Growth Stocks – Are companies that are small, but have growth potential
Income Stocks – Are well established companies that pay out high dividends.
Step 4
Get in touch with a third party
You should get in touch with a third party that will help you buy and sell stocks. The easiest was is through a stock broker. A stock broker can give you good advice and help buy and sell stocks. But brokers often are paid a commission. Depending on were you live you can also buy and sells stocks though your local bank.
© 2007 Money Educate, All Rights Reserved