Buying and selling of stocks is an effective trading opportunity for those who wish to garner the benefits of short-term investment plans. Generally, the exercise to buy/sell stocks is done by taking the assistance of a professional stock-broker. The companies list their stocks and the professional stockbroking firms then deal with the customers who are willing to buy/sell stocks. These days, there has been a rapid increase in the number of online stockbrokers as well. These stockbrokers are different from traditional or full-time stockbrokers in the sense that their primary concern is to simply list the options and sell the stocks to customers. There is no requirement of any detailed financial advisory or consultation regarding the in-depth analysis of your investments with an online stockbroker. In case you wish to have a detailed understanding or consultation regarding your investments, liabilities, and available options, then you must avail the services of a fulltime stock brokerage firm to buy/sell stocks.
Apart from this, How to Buy/Sell Stocks?
certain times when a large blue-chip company role out a Direct Stock Purchase Plan (DSPP) for members of the general public. In such cases, the customers need not take assistance from any stockbroker and can buy/sell stock directly from the company. However, the process and procedure involved to buy/sell stocks, in this case, is not quite streamlined. This is because the whole mechanism of rolling out a DSPP is different and varies from one company to another. While some blue-chip firms may sponsor a DSPP directly, others may issue the same through a third-party transfer agent.
The major steps to buy & sell stocks are as mentioned below
- You must always begin by listing out your financial goals, liabilities, and availability of surplus capital. This will help you in having better clarity of decision. You can take the help of financial planners or dedicated stockbrokers, as mentioned earlier.
- Before choosing a stockbroker, you must check the updates for any DSPP by any blue-chip firm. The companies issue a DSPP on their websites and these plans offer a direct benefit channel between you and the firm so that you can buy/sell stocks directly.
- Opening a stock brokerage account is the next step that follows. For this, you need to decide whether to hire the services of a full-time stock-broker or a discount broker. If you are a first-time investor and want assistance with your finances, then a professional, full-time broker is a better option.
- The opening of a stock account involves documentation and filling up a form for certain details. You will be assisted by the broker in this.
- The stockbroker will then help you in choosing a company of your interest, after analyzing your financial statements, needs, goals and requirements. Generally, first-time investors buy/sell stocks from blue-chip firms. This is because these firms represent established brands with trusted reliability and subscription/consumer-base. The market share of the blue-chip companies is the largest among the companies in general and thus, they offer a long-term growth factor.