Guide To Stocks: How To Buy Shares For Profits
Currently buying shares of a company is a common activity carried out by the community because it’s now easier and simple with the help of internet connectivity. But make sure you have the understanding of what is stock before learning how to buy shares.
Definition of Shares
So, shares are rights that a person has against a company thanks to the delivery of a share of capital. So when you own a share it means you are included as the owner, and have the right to supervise the company. In addition, you will also get dividends according to the amount of profit earned by the company.
The form of the stock itself is in the form of sheets of paper. The sheet of paper will include your name indicating that you are the legal owner of the company according to the percentage of shares you own.
How to Buy Stocks
In the past, to buy a stock, you had to deal with it conventionally through a bank or broker. However, in the current era, buying and selling shares is a fairly easy activity, you can make purchases online or stock provider applications.
You will find the term Lot in buying and selling transactions of a stock. In 1 lot consists of 100 shares. So at least you can buy and sell shares in as many as 100 shares.
For those who are already curious about how to buy shares, here’s how:
Buying Shares With a Full Service Broker
Buying shares at a full service broker provider will certainly make it easier for you. Later the broker will look for information about the assets you have, risk tolerance, income, purpose of buying shares, and so on. From this, a full service broker will find out which type of stock is most suitable for you.
In addition, a full service broker will also assist you in planning future stocks, paying taxes, budgeting, and so on.
Buying Shares Online
This method will help you buy stocks online. Of course the costs you incur will be cheaper than buying shares through a full service broker.
Purchasing stocks online will be suitable for those of you who want to learn about stocks or already have knowledge about stocks and how to manage these stocks. Because the services provided by online or discount brokers are not as many as full service brokers.
How to Sell Stocks
Just like buying shares, selling shares is now fairly easy. For those of you who want to sell shares, you can follow these steps:
Select Platforms
To sell shares, choose the same platform where you bought shares before.
Contact Brokers
Contact your broker to sell the shares you own.
Transfer of Funds
After the shares have been sold, the funds will be transferred to the account that you have.
Stock Buying Tips
Before buying shares, make sure you follow these tips:
- Know your risk profile
- Do a test to find out your risk profile, and buy shares according to your risk profile
- Do good financial management
- Perform an analysis on the movement of a stock
- Create a trading plan
- Do regular exercises
Closing
Those are some points about how to buy shares, how to sell shares, as well as some tips that you can do before buying a share.
Hopefully the information above can help those of you who are studying stocks more deeply.
