| Many people who want to start buying and selling | | | | brokerage firms. This is much less costly than using a |
| stocks in the stock market have never gotten started | | | | traditional broker. In fact you can trade for about $20 |
| simply because they are intimidated by their perception | | | | at many online brokerage firms. |
| of the process. They are afraid it is either too | | | | Buying and selling stocks is not unlike the other |
| complicated or expensive for the average person. | | | | transactions except there is sometimes some haggling. |
| Nothing could be further from the truth. In fact buying | | | | There is what is called the market value and there is |
| and selling stocks in the stock market is a simple | | | | the asking price. The asking price is the price that the |
| process. | | | | seller is willing to sell the stock certificate for. The |
| First of all you need to have an understanding of what | | | | difference between the market value and the asking |
| stocks are. A stock certificate is a unit of ownership in | | | | price may sometimes only be a few cents. |
| a company. By owning a share of stock in a particular | | | | If you are selling stocks you'll need to keep in mind the |
| company you are actually owning part of that | | | | bidding price and also the price someone is willing to |
| company. | | | | pay to buy the stocks from you. |
| There are two kinds of stocks you should be familiar | | | | Although you can always buy a stock for the current |
| with. First of all, there is common stock. This is the | | | | market value or sell it for what you'd like to there |
| most common type of stock that is traded and held | | | | usually is not a huge difference. The difference may |
| by the public. If you own common stock you have | | | | only be a penny. Stocks that are traded a lot on the |
| voting rights along with the right to share in dividends. | | | | market will often have little or no difference. |
| Preferred stock on the other hand, gives the owner | | | | When you found a stock you want to buy and have |
| fewer rights except in one important area. Those who | | | | determined the asking price all you then need to do is |
| own preferred stock usually receive consistent | | | | tell your broker how many shares you want to buy in |
| dividends. In fact investors buy preferred stocks for | | | | your broker buys stock for you. |
| the income from dividends. | | | | It's that simple. Do some research into the various |
| The majority of people who buy and sell stocks do so | | | | online stock brokerage firms and find one that you can |
| through a stock broker. The most popular | | | | feel comfortable doing business with. You will soon be |
| stockbrokers have now become online Internet stock | | | | buying and selling stocks on the stock market. |