How to buy shares in the market

Buying stocks can be a very profitable investment if the organization whose valuable documents are acquired is a blue chip. In any other case, the risk of loss is very high.

Instruction manual

1

Shares are securities that provide an investor with income either in the form of dividends or through speculative operations. The mechanism that provides the very opportunity to buy and sell shares is called the stock market. The acquisition of shares through such a mechanism does not occur from the issuer to the buyer, but from the holder to the new buyer. In fact, this is a secondary market.

2

Equity markets allow start-up companies to raise the necessary capital, and investors who buy shares in a successful startup can wrap up their investments and multiply them in a short time. In addition, an investor, with the help of the market, can significantly reduce his risks by distributing capital to reliable but less profitable stocks.

3

Three groups of people can trade on the stock market: dealers, brokers, and market makers. Dealers work exclusively for themselves and at their own expense, brokers are intermediaries who trade in shares at the expense of the client and on his behalf. Market makers provide interaction between brokers and dealers, as well as set quotes. If you want to buy stocks in the market, it is best to do this through brokers.

4

Choose 3-4 companies offering their securities trading services. Find out if they have State Securities and Stock Market Commissions. Tell us what stocks you need to buy. Compare the conditions on which brokers will work and the percentage of commissions for which they will work.

5

The legal part of the transaction when buying shares through a broker is the intermediary himself. You only need to present a passport, sign an agreement and transfer the necessary amount of money to the account of a stock market professional. After the operations performed by the intermediary, you should have a share certificate in your hands. The same legal force as the share certificate will have an extract from the custodian's custody account on the number of securities recorded on you.

6

If you need securities of a particular company, then you can go to the seller directly. But this can only be done in the OTC market. Usually these are shares of organizations that are not quoted on stock markets. Be prepared for the fact that the legal registration of rights to shares will fall on your shoulders.