How do I buy stocks in the stock market?

Hello, I know what is the main purpose of investing in the stock market and all that jazz. But my question means how do I do it with a broker. Do i have to open an account? Can I do it without a broker? How do brokers know how to place an order?

Thanks

Public Comments

1. before I go spending money on stocks I would learn a little bit more on the stock trade first They will break you

2. Yes, you have to open an account with a broker. Only brokers who own a seat on the stock exchange can place the trades.

3. i use etrade.com its cool 12.00 for commission when buying and selling

4. Open up an account with a discount broker. Purchase mutual funds with low expense ratios that broadly invest in the whole market until you feel comfortable with branching out into individual stocks.

Before you can invest in individual stocks, you must:

Be able to read their balance sheet, income statement, and statement of cashflows-
Understand what goes on in their quarterly report and an annual report.
Listen to company conference calls
Fully understand what the company does, how it makes money, and what events would cause it to make less money.

Then, when you purchase the stocks, keep your eye on company information, but do not buy and sell all willy nilly. This are businesses you are investing in and everyone I've ever met who day trades gets seriously burned.

5. Yes you can. You can buy stocks through a mutual fund or directly from the company.

I'd recommend T. Rowe Price for their no load mutual funds. Or you can go directly to the website of the company, look under "investor relations" for stock information.

6. You have to use a broker. Either "human" or "online broker like etrade or scottrade. You open an account & trade.
Your last question is stupid. How does anyone know how to do the job that they have?

7. When you have opened an account, you place orders detailing when you wish to buy or sell and at what price.

The brokers have access to this information and perform trades based on your instructions on your behalf!

However, remember that others may also be buying or selling at this same price, so orders are 'stacked' and traded accordingly.