The stock market for beginners is easy to get started now that most brokers are online. First you will need to open a stock account and you can easily do that online much like you do anything online nowdays. Once you give them all your information you will need to "fund" your account. That means you will need to put money in it. You generally have two options and the most popular is to write a check and send it in to them. This will usually take about 10 business days before you will see the money show up in your online stockmarket account and be able to trade. The second option is to physically take a check in to the companie's office if they have one in the major city that is nearest you.
Once you have money in your account you are ready to buy a stock which is called trading. The stock market for dummies can be a bit overwhelming at first with all the terminology that is thrown around and it takes some time to learn it. Buying a stock is actually quite easy and most online companies will have a tutorial section to help you out. This tutorial section should help you learn how to buy and sell stocks.
A great place to learn and get information about individual stocks is the ValueLine report which you can find at most any public library. This report comes out every month and will give you analysis of many of the stocks you see daily going by your television stock ticker. This ValueLine report will give any stock market beginner some detailed analysis of every stock that is easy to understand. It has stock charts and detailed reasons why it thinks a stock is a good investment or not.
If you are a stock market for beginner then you need to start slowly and try to understand things one at a time. It is exciting when the stock market goes up and you make money but it is not so fun when your stocks go down. It is often better to buy stocks when they are low so that they have room to go up and make you money. In a down market like 2008 it might be a good time to learn how to buy stocks and start investing in the stock market.
Stocks For Dummies
How To Buy Stocks For Free With Zero Commissions
Some companies allow you to buy and sell their stock directly from them. If you choose this method, you will not have to pay any commission to a broker. This is great for stock market beginners and those people who want to buy just a few shares. Many US companies have this sort of plan which is called a Direct Purchase Plan. Many top corporations such as Chevron, Pfizer, JP MorganChase. and others have this type of direct purchase plan for their stock.
It is against the law for companies to advertise these plans so you need to find them yourself. You might contact the investor relations department of the company you wish to buy stock of to find out whether they will allow you to buy their stock directly from them.
When you find a company that does have a direct purchase plan, you should request a prospectus about the program to find out what its limitations are. Some programs require that you already own some stock before you are allowed to purchase more through the program. Many companies allow you to buy more shares with no commissions with the dividends you earn on your existing shares.
If you end up enrolling in their program, you will get a statement every time you make a transaction with them and you will get a 1099 tax form at the end of the year detailing your activity.
Buying stock through a direct purchase plan is a great way to get involved learning how to buy stocks for beginners. Stocks for beginners is something that you will need to invest a lot of time researching and this is just another of the many ways to get involved.
