What Is a Stock and How Do I Buy One?
“Stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.” (Investopedia)
When you purchase a stock you are investing in a company, ideally a solid one that will provide returns on your investment by performing well for years to come, which will raise their stock price.
You’ve heard of people investing in start-ups, when you buy stock your investing in a company that is already well-established such as Amazon or Facebook, some of the best performers in the market over the past couple years.
How do you buy a stock?
First decide if you want to go through an electronic broker or a face to face broker. Some electronic brokers include, E-trade.com, TD-Ameritrade, and Center point securities. They all have their pro’s and con’s.
Then pick a company you want to purchase stock from, which comes after you do extensive research and have come to your own conclusions why you think it’s a good investment.
Set an order to buy the stock through your broker and there you go, you’re now an investor in that company.