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Buying Stocks

Making a careful investment is really necessary in order to get the maximum benefits and rewards from what we have invested. A lot of us invest in stocks even though we know that this type of investment is very risky and challenging. That is why those people who are just getting started with stock market investments need to learn the basics about the stock market for beginners, so that they will have an idea, more or less, on the risks that they will have to face. Of course, stock investors must be brave enough to face such risks when they arise.

There are some stock investors who opt to buy penny stocks because they believe that these are the easiest to own. Penny stocks, also known as cheap stocks, are those which are sold at a very cheap price of less than $5 per share. This is the reason why owning plenty of shares is made possible, even with little capital. These stocks may be bought from pink sheet markets and over-the-counter markets, and an online discount brokerage firm or full service brokerage firm may be hired in order to assist the investors in buying stocks. Continue Reading →

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How to Buy Stocks

Investing in a stock market would involve trading of stocks — which is the buying and the selling of shares of stocks in the financial market. Stock trading usually occurs on the exchange floor of the financial market. However, with the availability of the modern technology nowadays, stock trading also takes place online, where the stock investors will need to hire a stock broker who will be the one to connect with the exchange network to look for a buyer or a seller according to the orders of the investors. Buying stocks online is believed to be the easiest and fastest way to trade. But of course, those who are first timers with this kind of investing need to practice extra caution in choosing the online stock brokers to hire. Learning the basics about the stock market for beginners is also necessary in order to be successful with any kind of stock investment — may it be regular stocks, or penny stocks. Continue Reading →

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Stock Buying Guide

Before a person begins any type of stock market investment, it would be best if he finds some time and effort to learn the basics about stock market investing. Investing in a stock market would mean that the investors will trade stocks. Trading of stocks means selling or buying stocks in the market. This is the very basic about the stock market for beginners to understand and learn. When a person buys a certain number of shares of stocks, he will automatically become a a shareholder or a partial owner of the business or company that owns the stocks. As a shareholder, the profits that the company will gain will be shared with him in the form of dividends. However, if the company fails, the shareholder will also have to take and suffer the risks of incurring losses.

What are penny stocks?

Some people invest in penny stocks because these are easier to own, as penny stocks cost only less than $5 per share. This means that the investors who do not have big amount of capital may buy several shares at once. Those people who are planning to buy penny stocks must go to either an over-the-counter market or a pink sheet market, as penny stocks are not sold in major stock markets just like the regular stocks. However, since the penny stocks that are listed in pink sheet markets are not required to file their financial reports with the Securities and Exchange Commission, they are much riskier to invest into.

How to buy penny stocks?

Buying penny stocks is just like buying regular stocks. If the first time stock investors do not yet know how to buy stocks, he may opt to hire a discount broker or a full service broker to process the trading transactions for them. This is the same as with buying penny stocks.

The discount brokerage firm is the cheapest that we could find. They process the trading transactions, but they do not offer investment advice to the investors. Thus, the investors who plan to hire a discount broker must be aware about what he is doing already. Then he must also know which penny stocks to buy, as discount brokers do not make any suggestions which are the hottest penny stocks in the market.

Another type of brokerage firm that process the purchase transactions of penny stocks, which is ideal for the first time investors and those who are not confident in choosing which stocks to buy, is the full service brokerage firm. This type of brokers offer financial and investment advice to the investors. They provide a detailed stock buying guide to the investors, and help them choose which penny stocks to watch and buy. They also assist the stock investors in managing their investment account. The drawback, however, is that full service brokers are really expensive when it comes to commission rates and service fees. Thus, the investors who are planning to hire full service brokers must shop around for several brokers and find the one that gives the best rates and lowest fees.

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