Stocks Basics: Buying Stocks
AAA
  1. Stocks Basics: Introduction
  2. Stocks Basics: What Are Stocks?
  3. Stocks Basics: Different Types Of Stocks
  4. Stocks Basics: How Stocks Trade
  5. Stocks Basics: What Causes Stock Prices To Change?
  6. Stocks Basics: Buying Stocks
  7. Stocks Basics: How to Read A Stock Table/Quote
  8. Stocks Basics: The Bulls, The Bears And The Farm
  9. Stocks Basics: Conclusion

Stocks Basics: Buying Stocks


You've now learned what a stock is and a little bit about the principles behind the stock market, but how do you actually go about buying stocks? Thankfully, you don't have to go down into the trading pit yelling and screaming your order. There are two main ways to purchase stock:

1. Using a Brokerage
The most common method to buy stocks is to use a brokerage. Brokerages come in two different flavors. Full-service brokerages offer you (supposedly) expert advice and can manage your account; they also charge a lot. Discount brokerages offer little in the way of personal attention but are much cheaper.

At one time, only the wealthy could afford a broker since only the expensive, full-service brokers were available. With the internet came the explosion of online discount brokers. Thanks to them nearly anybody can now afford to invest in the market.

2. DRIPs & DIPs
Dividend reinvestment plans (DRIPs) and direct investment plans (DIPs) are plans by which individual companies, for a minimal cost, allow shareholders to purchase stock directly from the company. Drips are a great way to invest small amounts of money at regular intervals.

Stocks Basics: How to Read A Stock Table/Quote

  1. Stocks Basics: Introduction
  2. Stocks Basics: What Are Stocks?
  3. Stocks Basics: Different Types Of Stocks
  4. Stocks Basics: How Stocks Trade
  5. Stocks Basics: What Causes Stock Prices To Change?
  6. Stocks Basics: Buying Stocks
  7. Stocks Basics: How to Read A Stock Table/Quote
  8. Stocks Basics: The Bulls, The Bears And The Farm
  9. Stocks Basics: Conclusion
RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  3. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  4. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
  5. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...
  6. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) ...
  1. How did Nathan Rothschild become a stock exchange speculator?

    Tycoon mastermind Nathan Mayer Rothschild was a crisis creation artist. How exactly does one bring a nation's economy to ...
  2. What are some examples of different taxable events?

    Learn what a taxable event is and how it affects investors and taxpayers with examples of taxable events that can result ...
  3. What are some examples of Cash Flow from Financing (CFF)?

    Learn about examples of cash flow from financing, such as how companies fund their operations and how it is reflected in ...
  4. Can retail investors buy commercial paper?

    Find out whether retail investors buy commercial paper, and learn about the restrictions that often prevent individual investors ...

You May Also Like

Related Tutorials
  1. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  2. Economics

    American Depositary Receipt Basics

  3. Options & Futures

    Beginner's Guide To Trading Futures

  4. Trading Strategies

    Introduction To Order Types

  5. Options & Futures

    Options Pricing

Trading Center