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How to buy shares?

How to buy shares?

Shareholding is probably one of the best ways of investment. Everyone can earn money on the stock market; you just need to choose the most suitable method of trading in your certain case.

Where to begin

Shares movement is handled by the stock market. Shares' trading occurs on stock exchanges. People who trade those shares are brokers.

Here is the simplified scheme for buying shares:

1. Open a brokerage account to enter the stock market (only a legal entity can enter the market);

2. Deposit an account (depends on your expectations);

3. Trading operations.

Let's consider it in details. First of all, you need to realize the goals you pursue and the resources you have to start buying shares.

Small shares: pros and cons

If your financial assets are limited, you have an opportunity to buy small shares. In other words, you invest in small or developing companies. A big plus is that you can buy small stocks at low price. What is important is online brokerage service in the off-exchange trades allows to do it on your own. At the same time, small shares bring a lot of risks. For example, unreliability of a company, problems with the resale shares in the future, or simple fraud may be a risk. Besides, in order to get the maximum result from trading, it is better to buy small stocks and sell them as quickly as possible. In any case, you should start with making sure that the purchase is worth the investment and the company is reliable.

If you buy large companies’ shares

If your plans and opportunities are big enough, you can also join the "big game" and hit the jackpot.

In this case, you need an intermediary - an experienced broker who you trust your assets. With a broker, you can enter any stock markets - both domestic and foreign. If you have not decided on the object of purchase, the expert will tell you about the situation on the stock market and help you make a productive investment portfolio, consult in choosing a joint-stock company, and will help with the other legal aspects. If you are interested in a specific company and its shares, you give your broker a specific task and expect a result.

Risks prevention

In both cases, there are risks, but any risks are an absolutely usual aspect of any business.

Anyway, to minimize them, you must follow the basic rules:

• invest exactly as much as you can lose;

• follow a competently drawn up investment portfolio and the style of exchange trade;

•  find a professional broker.

There are many online resources that contain a huge amount of background information on this topic today. Spare more time to learn more information: forewarned is forearmed.