Saturday, October 30, 2010

How to invest

To start investing all you need is money and a stock broker.Brokers are either individuals or organizations that execute your buy and sell orders. They will have an account for you, unlike a bank account, that contains not only money but stocks and bonds as well. The money one gets from selling shares will be transferred into this account and money used to buy shares will be taken out of the account. There are two types of stock brokers to choose from, full service and discount stock brokers. Full service brokers will give you advice and recommendations, but have very high commission fees,as much as 100$ per operation,and discount brokers, which are those you see on TV, will answer any investment questions you may have with lower personalized service,but with a lower commission fees as well, of about 10-20$.The first is better suited for high investments with a higher starting sum and the second with lower amounts with the advantage of keeping the rest of your money for yourself.