Sex and finances are two of the most common causes for newlywed fights. Investing in stocks, like those listed on the New York Stock Exchange, are a great way to secure your family's future financially. Buying stocks used to be an expensive and difficult process that kept many smaller investors out of the game and sitting on the sidelines. If you start investing in stocks listed on the NYSE, that will take care of one of those arguments.
Finding a Brokerage
Using your computer, search the Internet for an online broker. There are several out there, like E-Trade, Ameritrade and even some banks, but they are not all the same. Spend some time looking at which options are important to you. One of the most important factors is the fee per trade.
Choose the broker with the best fee structure. Fees will always be charged, so what brokers charge becomes an important factor. Nearly all sites offer free use of some sort of research or analytical tools, so again, the fees are the factor that will have the most impact. The goal is to keep the fees to less than 10 percent of what you are investing. For instance, if you are investing $1,000, then a site that charges $8.99 per trade might not be too bad.
Set up your account. Setting up an account is not a quick process. Once you establish your account and allot the money to be invested, it can take up to 10 business days before you can start using the account properly. This is because your account must be registered and the appropriate tax forms need to be created in your name. Just be patient.
Do your research. The entire internet is there for you to use. For every stock out there, there are thousands of analysts both for and against buying a stock. Some are volatile, some have high dividend payouts, some have different tax advantages. Focus on the companies that you are interested in, like those listed on the New York Stock Exchange, or NYSE. Make the most of the waiting period to become a knowledgeable investor, rather than a fool with money.
Making the Trade
Find the stock. Using your research, locate the companies you want to invest in. Each listed company will have a one-to-four letter code known as its symbol, or ticker symbol. This symbol will allow you to easily locate your company when it comes time to buy.
Find a quote. Before you buy, you will need to have a quote of the stock. Most Internet browsers and search engines will allow to just type the symbol in the search bar, but they all lead you to a quote for your stock. A quote is nothing more than the value of the very last trade made on your given company.
Determine how many shares you want to buy. Using your seed money, like the $1,000 we used in the example above, divide the seed money by the quote price. For example, a company that trades for $14 a share would give you 71.4 shares when divided into $1,000. To ensure you can pay for the transfer fee, charged by the broker, you should use 69 or 70 as the number of shares you can afford.
Make the purchase. Every site has their own set up for making a trade, but you need the "Buy" screen. From this screen you need to identify the stock ticker symbol, or the code, for the company, and you need to tell them how many shares you want to buy. There are literally hundreds of options, as well as put, call, limit, market limitations, but you are looking for the market price. Once you verify the trade, you are the new owner of the stocks purchased.
- Research is key. Without proper research, you doomed to lose significant portions of your investment money.
- Know your limits. This is just like gambling, but the house does not have the edge here. The edge goes to those who do their homework.
- You can lose all of money. Stocks are very risky, especially without doing your research or investing in an option you are unfamiliar with. Options trading could have you thousands of dollars in debt in moments if you are not careful.
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