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