Buying shares can be a very profitable investment if the organization whose valuable documents are being acquired is a blue chip. In any other case, the risk of getting a loss is very high.
Instructions
Step 1
Shares are securities that provide the investor with income either in the form of dividends or through speculative transactions. The mechanism that provides the very ability to buy and sell stocks is called the stock market. Acquisition of a share through such a mechanism does not occur from the issuer to the buyer, but from the holder to the new buyer. In fact, this is the secondary market.
Step 2
Equity markets allow start-up companies to raise the capital they need, and investors who have bought shares in a successful startup can wrap up their investments and multiply them in a short time. Plus, with the help of the market, an investor can significantly reduce his risks by distributing capital to reliable, but less profitable shares.
Step 3
Three groups of persons can trade in the stock market: dealers, brokers and market makers. Dealers work exclusively for themselves and at their own expense, brokers are intermediaries who trade shares at the expense of the client and on his behalf. Market makers provide interaction between brokers and dealers, as well as provide quotes. If you want to buy stocks on the market, it is best to do so through brokers.
Step 4
Choose 3-4 firms offering their services in securities trading. Find out if they have a State Commission on Securities and Stock Market. Tell us what stocks you need to buy. Compare the conditions that brokers will work on and the percentage of commissions they will work for.
Step 5
The legal part of the transaction when buying shares through a broker is taken by the intermediary himself. All you need to do is show your passport, sign an agreement and transfer the required amount of money to the account of a stock market professional. After the operations performed by the intermediary, you should have a share certificate in your hands. The same legal force as the share certificate will have an extract from the custodian's custody account on the number of securities recorded on you.
Step 6
If you need securities of a particular company, then you can go to the seller directly. But this can only be done on the over-the-counter market. Usually these are shares of organizations that are not listed on the stock markets. Be prepared for the fact that the legal registration of the rights to the shares will fall on your shoulders.
