Shares can be purchased through an intermediary - a broker, who will appeal to the investor with money on the stock market at the request of the investor. To do this, the investor must conclude a service contract with the brokerage company.
Sooner or later, many investors face the question of a profitable investment of their funds. Some of them decide to invest in stocks, but they don’t know how to do it correctly. In fact, there are a lot of pitfalls here, and before you give your money to someone, it's worth learning a thing or two about this method of investing.
Where to buy
The Government of the Russian Federation at the legislative level has determined the procedure for acquiring securities, therefore, in accordance with the law, only a legal entity that has a license for dealer activities can buy and sell shares. Therefore, those who want to invest in stocks will have to contact a brokerage company. However, the broker himself is not involved in the sale of shares, he provides intermediary services, namely, he buys and sells the investor's securities on the stock exchange, transfers the profit to his account, accounting for each operation performed. Often, the functions of a broker or dealer in the stock market are performed by commercial banks.
How to buy
An investor needs to come to a brokerage firm or investment company with a passport and conclude an agreement for the provision of the relevant services. If the broker appeals on the securities market on behalf of the investor, the investor will have to transfer the amount of money agreed in advance to the account of the brokerage company. As a result, the investor will have his own depo account on the exchange or an account with a depository - an organization that keeps securities. The exchange will keep records of the investor's income and expenses from operations with securities, that is, it will record how many securities were bought or sold for the investor's money.
To open an account, an investor needs to deposit a certain amount of money into the exchange account. An application can also be made by phone, but to sign a contract for the purchase / sale of securities at the office, you need to appear in person. If the application is sent by fax, in response the investor will receive a form to fill out the order. All operations are carried out in a non-cash form, that is, the investor will not receive certificates of the shares he has acquired - his name will appear in the register of shareholders of this organization and the corresponding entry will be a confirmation of this.
All further operations with these securities can be carried out only with the consent of the investor, that is, before each purchase / sale, he must fill out a transfer order form, sign it and transfer it to the broker. For each transaction, the broker will receive money, as a rule, a certain percentage of the transaction amount.
