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Overview
Buying and selling shares is more commonly referred to as investing. When an investor purchases stock in a company, he is buying shares. When he sells the stock, he is selling shares. Modern technology has made buying and selling shares very convenient. All you need is a brokerage account and an idea of what kind of company you want to invest in.
Creating Your Account
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Step 1
Create and/or log-in to your online brokerage account. Popular brokerages with online trading include ETrade, Fidelity, Scottrade, and TD Ameritrade. See our Resources section to visit these brokerages. -
Step 2
Once you have selected a brokerage, navigate to their homepage and click on "Open an Account." You will be asked to fill out a standard form and answer some identity verification questions. You will also likely have to fund the account before buying or selling and shares. -
Step 3
Fund your account by either initiating an electronic transfer form your checking account or mailing a check to the address specified by the brokerage. You can also call or visit a branch office of most of these brokerages. Look for a link on the home page called "Contact Us" or "Find a Branch Office."
Buying and Selling Shares
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Step 1
Research the company you want to invest in. There are as many investment strategies as there are companies to invest in. Take time to read up on some basic investing tips before buying any shares. Many brokerages have links to online research or knowledge centers where you can view market information and analysis. -
Step 2
Once you have decided on a company to invest it, click on the trade tab on your account web page. Enter in the trading symbol. For example, if you are interested in buying shares of General Electric, enter the symbol GE. -
Step 3
Enter the number of shares you want to buy. Check the share price on your brokerage page or your favorite financial website. To get the full cost, you will have to multiply the number of shares by the current asking price and add in your brokerage's commission. Click trade or confirm to buy the shares as a market order. -
Step 4
To sell shares, click on your portfolio and choose the position you want to sell. Enter in the number of shares. Click "Sell" or "Confirm" to sell the shares. You will receive a confirmation from your brokerage when the trade is complete. -
Step 5
Call or visit your broker. If you are not comfortable using the internet to buy shares, another option is to call your broker. Some people prefer this method as you can get direct feedback or advice from a human being. Select "Contact Us" or "Find a Branch Office" to locate a phone number or address.
- Skill: Moderately Easy
- Tip: Many investors recommend diversifying you investments. This means buying shares of companies in different sectors, industries and even countries. A more diversified portfolio has less risk of collapse in the case of a problem in one particular industry.
- Warning:
- Buying and selling shares is risky. Be careful not to invest more than you can lose.
