| Have you ever wanted to get started buying and | | | | past. The reason brokers charged more the past |
| selling stocks in the stock market but it seemed to | | | | was they would often provide guidance and stock |
| complicated and you just didn't know how to get | | | | decisions. Most people now do their own research. |
| started? Buying and selling stocks is actually quite | | | | Buying and selling stocks is pretty much like any |
| simple and very easy process. | | | | other purchase except there sometimes a lot of |
| The first thing you need to do is have an | | | | haggling. Let's say a stock has a market value of $50. |
| understanding of stocks and the stock market. A | | | | If you want to buy this stock you will also need to |
| stock certificate is a share of ownership in the | | | | find out what the asking price is. This is often called |
| company. It is the smallest unit of ownership that | | | | "the ask." The ask is the price that someone is willing |
| you can have. If you own a share of stock in a | | | | to sell the stock for. This price might be the same as |
| company you are actually part owner of that | | | | the market value but it also may be a few cents |
| company. | | | | higher. |
| There are two types of stocks. There are common | | | | In order to sell stock you'll need to find out the |
| stock which represents a majority of stock held by | | | | bidding price is. This is the price that someone is |
| the public. If you own common stock you have | | | | willing to pay to buy the stock from you. |
| voting rights along with the right to share in dividends. | | | | While it is true that you cannot always buy a stock |
| The other type of stock is preferred stock. Actually | | | | for the current market value or sell for the same, |
| preferred stock gives fewer rights than common | | | | there is usually not a large difference between the |
| stock except in one important area and that is | | | | market value and the asking or bid price. This is |
| dividends. The most part companies that issue | | | | especially true of stocks that are traded often on |
| preferred stocks usually pay consistent dividends. | | | | the market. |
| Investors buy preferrsed stocks for current income | | | | Once you decide what stock you want to buy and |
| from the dividends. | | | | have determined an asking price you are willing to |
| Most people buy stock in the stock market through | | | | pay, then you simply tell the broker how many |
| a stock broker. One of the most popular ways to | | | | shares you would like to buy and the broker buys |
| buy stocks is now through Internet online | | | | the stock for you. |
| stockbrokers. This is also one of the cheapest ways | | | | Buying and selling stocks online is that easy. Do a little |
| to get started. The average commission charged by | | | | research into the different online brokage firms and |
| an online stock broker is about $20. This is | | | | choose one that you feel comfortable with. You will |
| significantly less than traditional brokers charge in the | | | | soon be an expert stock trader. |