Buying shares on the stock exchange is buying a percentage of a company. If the company is selling 200 shares, and you are buying one share, that means you own .5% of the company. Buying shares on the stock exchange is a great way of expanding your income. It works much as a bank does, except that the stock exchange does not have a fixed interest rate. If the company is not doing so well, your shares can plummet. If the company does well or great, your money can increase in big amounts.
Here are the steps for buying a share on the stock exchange.
- Get a broker. A broker is the go-between of the company and the shareholders, or the people who bought a share in the company. The broker is also the person who sells the stocks of a certain company. A broker earns money when the stock of the company he is selling goes well. He gets a percentage or a fixed fee in the earnings. A broker can advise you in what stocks to buy. He keeps track of what company is doing well and what is not. He will also buy the shares you choose in your behalf.
- Register online. The easiest way to buy and sell stocks is online. You can manage your account at any time without the need to step out of your house. There are online stockbrokers all over the Internet. They can advise you and buy stocks for you just as regular stockbrokers do. You can make your own moves and calls with an online account any time you feel like buying or selling more shares.
- Invest in the right symbol. Companies have unique symbols in the stock market. Microsoft's symbol is MSFT, while Google's stock symbol is GOOG. Double-check the stock you are going to click on before investing. If you are investing in the right stock symbol, you will not lose money in a company you do not like.
- Put money in your brokerage account. To buy shares on the stock market, you need to put the money in your brokerage account. You need your bank account and routing numbers to transfer money to the brokerage account. Your broker will then deposit the money earned from your shares in small increments. The earnings will go to your brokerage account.
- Do research on your stock. It would also help to research other stock options you can buy with your earnings. Get advice on stocks that earn high and look at their earnings to confirm their reliability.
Learning the basics when it comes to stock exchange, along with the steps listed above might help you earn big amounts of money through buying and selling stocks. Many high-earning companies welcome shareholders. You can get in the action and buy stocks from their broker. Finally, make sure you deal with well-reputed stockbrokers and invest in stocks that are less likely to fail. The choices you make with your money all depend on you in the end. The steps above, your own research and the reputation of the stock you invest your shares in will affect your long-term earnings.