You've learned the basics about the stock market, but how do you open an account and starting buying stocks? The
popularity boom of the internet has made investing in stocks online very easy. You can purchase stocks through a
brokerage company or directly from the company who is offering the stock you would like to purchase.
Purchase stocks through a brokerage company
Purchasing stocks through a brokerage company is the most common way to buy stocks. So let's go through an example of
opening an brokerage account with ABC Brokerage Company, then buying 250 shares of your favorite stock. For your
convience we have a list of some of some of the brokerage companies that are available in
our Stock market information page.
Opening a stock brokerage account
The first step is applying for an account and sending ABC Brokerage Company a check for how much you would like to
open the account with. After receiving your approving your application ABC Brokerage would then open your account and
deposit your check in your account. You can now logon to your account and see when your funds are available for
you to start investing in the stock market.
Start investing in the stock market by purchasing your first stock
Once you are able to start investing you put an order in to buy 250 shares at the current price of your favorite
stock, which is currently trading at $15.00 per share. ABC Brokerage would then send an order to buy 250 shares of your
favorite stock at the current market price to the appropriate exchange that has that stock listed. Every stock is
listed under some
exchange or some like overseeing entity. The exchange then electronically matches your order to buy 250 shares of
your favorite stock with someone who is willing to sell 250 shares of your favorite stock at the current market
price. There are other behind the scenes processing steps that are invisible to the end users so we won't even
mention them here. Once the match is done your account will send you some kind of confirmation that you bought
250 shares of your favorite stock at $15.00 per share. There you have officially started stock market investing.
Buy directly from the company
Dividend reinvestment plans or DRIPs is a way to invest in individual companies for a lower cost than through a
traditional brokerage company. They allow investors to buy stock directly from the company. This is a nice way
to invest if you have a small amount to invest and you would like to put additional money towards that stock at
consistent intervals of time ($100 per month). For your conveniance we have also created a list of DRIP companies for you to.
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