Buying Shares – Chapter 14: Buying and selling shares- how’s it done?

This is chapter number 14 out of 19. Read the rest:

Read Buying Shares – Everything that you Wanted to Know but were too Scared to Ask – Chapter 1: Introduction
Read Buying Shares – Chapter 2: What are Stocks and Shares?
Read Buying Shares – Chapter 3: Different Classes of Stocks
Read Buying Shares – Chapter 4: What affects ‘Stock Prices’?
Read Buying Shares – Chapter 5: Stock Markets
Read Buying Shares – Chapter 6: Stock Exchanges, Why are companies listing on a stock exchange today?
Read Buying Shares – Chapter 7: Stock Indexes – What do they stand for?
Read Buying Shares – Chapter 8: How do I Trade Shares?
Read Buying Shares – Chapter 9: What kind of a Trader are you?
Read Buying Shares – Chapter 10: Investing Methodology: Planning Trades and Picking Stocks
Read Buying Shares – Chapter 11: Placing an order – The technicalities involved, Step 1 – Open a Share Dealing
Read Buying Shares – Chapter 12: Step 2 – Research the Stocks
Read Buying Shares – Chapter 13: How to Read Quotes of Shares

While it might seem daunting and slightly mystifying to get involved with buying and selling shares at first, it’s really very simple and it has never been so open and accessible to so many people.

Fundamentally, there are three ways of buying shares:

1. Using the stock broking services offered by your bank
2. Over the phone via an established stockbroker;
3. Over the internet by means of an online broker.

Which is the best for you, depends on how certain you are in your abilities and knowledge of the market and on how much you want to be involved in the whole process of trading. In days gone by, when stock market investment was the game of very few, the immense majority of stockbrokers functioned on an ‘advice-giving’ basis.

If you want lots of help with your investments – and are ready to pay for it – full advisory service might be best suited to you, where the broker will keep an eye on your personal portfolio and give you suggestions on trading shares. Remember that he has many clients as well as you, so executing of trades might be slightly slower with this kind of service.

Fund Managers offer you a service where you supply them with the money and they make all the decisions for you. This of course takes the responsibility away from you but costs alot of money.

Stockbrokers fall into two kinds: discount and full-service brokers.

Discount brokers execute the trade for you either through the internet or over the phone; they do not give you any advice however.

Full-service brokers will give you advice and more resources in conducting your trades. They of course come at a higher price- usually a higher commission.

There are many online brokers now, that the market has become nearly saturated by them. They offer you a cheap option but can give you no advice, therefore they supply you with other resources to help you trade like free market news, charts, technical studies and live quotes.

Read Buying Shares – Chapter 15: Buying Shares – The Rules
Read Buying Shares – Chapter 16: Tips for Stock Market Investing
Read Buying Shares – Chapter 17: The Difference between Stocks and Shares
Read Buying Shares – Chapter 18: Q & A session
Read Buying Shares – Chapter 19: Glossary words to learn