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How Are Stocks Bought and Sold?

how-are-stocks-bought-and-sold

If you pay any attention to the workings of Wall Street, then you probably know about stocks. At very least, you have heard about these financial instruments. They are the tiny pieces of a company that one buys when they are trying to make money by means of the growth of that company. This is why there is so much talk about stocks, because they are a way that one can make money.

How Do You Buy A Stock?

In order to buy a stock, you have to have a stockbroker. This person acts as the middleman between you and the company of which you are trying to buy a piece. In some cases, there are ways that you can go in and buy your own stock for yourself, but these are rarely used and not as simple. The easiest thing that you can do is make sure that you have a broker who is going to charge the lowest commissions possible. You then give this person the money that you want to invest along with the orders about how to invest it. You can tell them to buy or sell any particular stock or other security at the price that you think is reasonable.

Where Can I Find One Of These Brokers?

In the modern day it is becoming easier and easier to find a broker online. This means that you no longer have to leave the comfort of your home in order to execute the stock trades that you want. This is a great benefit to those who want to have as much control over their investments as possible. It is the closest thing that you are going to find to getting to be your own broker. A side bonus to this is that often times you are going to pay a lower commission by going this route as well.

Is Selling Done The Same Way?

When you decide that you would like to cash out your stock position, then you simply follow the same steps that you took to buy the stock. You just pay the commission and get the cash back for the part of the company that you own.

 

Resources

“Securities Salesperson.” NH.gov – The Official Web Site of New Hampshire State Government. N.p., n.d. Web. 11 Mar. 2011. http://www.nh.gov/nhes/elmi/licertoccs/secsales.htm.

“Stop Order.” U.S. Securities and Exchange Commission (Home Page). N.p., n.d. Web. 11 Mar. 2011. http://www.sec.gov/answers/stopord.htm.

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