How to purchase stocks ?

Stock market tutorial - purchasing stocks

You have understood the basics of stock and stock market. Now you can look into buying stocks. There are two main ways to purchase stock:

1. Buying through a brokerage.
Most of the investors buy stocks using a brokerage. There are two types of brokerages - Full service brokerages and discount brokerages. Full-service brokerages offer (supposedly) expert advice and can manage your account; However, they also charge a lot. Discount brokerages offer little in the way of personal attention but are much cheaper.

In old times, only the wealthy could afford a broker since only the full-service brokers were available. With the internet came the explosion of online discount brokers. Thanks to technology nearly anybody can now afford to invest in the market.

2. DRIPs & DIPs
Direct investment plans (DIPs) and Dividend reinvestment plans (DRIPs) are plans by which individual companies allow shareholders to purchase stock directly from the company for a minimal cost. Drips are good for investing small amounts of money at regular intervals.

Table of contents: Stock Market tutorial

1. Stocks: An introduction.
2. What are stocks ?
3. Types of stocks.
4. How stocks trade
5. How stock prices change ?
6. How to purchase stocks ?
7. How to read a stock table/quote.
8. Animals in stock market
9. Stock Market Tutorial: Summary.