Investing in Shares – How to Buy Share in Company

As a newbie in the world of shares and markets, you could be simply confused about the how(s) and where(s) of the investment options.

With a plethora of options and tips about the smart choice, you could find yourself not able to move from where you started. Here is a set of some important guidelines that would help you through the process of making right decisions while entering and dealing with the stock market and trading.

The first step:

  • You need to first decide about the kind of brokerage account you wish to deal with. For that, you can opt from sticking to and having faith in your bank so that you can opt to trade through an account in the bank. Another way is to go for the discount brokerage where you are assisted by a firm or a set of individuals who will help you invest/buy shares in a particular company but would not be of much help besides this. The third and most trusted of the options (that continues to be practiced by many even today) is to go to a brokerage firm or a genuine broker. The option is a little expensive but is sure to provide you a good guidance and enriching beginning in terms of your exposure to the field.
  • While making your choice, be sure to talk everything about the terms and conditions and be clear about your needs and requirement and also do not make a deal before enquiring about their fees, other expenditure, discounts etc.
  • Having made a choice to go with a certain mode of trading and your broker, you are ready to take the first step forward.
  • Your broker would guide you and help you buy the share of your choice. Do not take a blind decision after hearing about the available options. Prior to your commitment, the most important thing is to check things yourself. Try to do your own research and try to gain some fundamental knowledge before you decide to buy a certain share.
  • As a safe option, never commit very huge sum in one go. You could also opt to deal in mutual funds through your bank account. Some also find investing in the firms they work as a reliable option.
  • IPOs of reputed and public companies are considered safe and providing good returns with regard to long term investment.

Now, after the research and selection of your broker you are ready to take the next step.

Remember to take care:

  • You must now decide how much money you want to invest. To begin with, it is advised that you go slow and go for small investments. That gives you the opportunity to learn.
  • The time frame that you intend to stock your money for is another important area that you need to decide before taking the plunge.
  • Be sure to refer to journals and websites to gain a broad idea about your investments. You should be a smart investor who is aware of where and how his money is being utilized and keep track of the way things move.
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