How To Buy Stocks?

JuiceMan · 11-17-2001, 11:09 AM

Ok please excuse my ignorance here. I have had my eye on a particular stock for quite sometime now. It is currently going for around $10 a share. Problem is I have VERY little money! I would like to buy about 10 shares of the stock.

Now I have no idea how to purchase stocks. Since I am only going to spend $100 will that work or is there a certain minimum amount that must be purchased?

How do I make the purchase? Do I got through a local broker of some sort or do I do it online or what?

Can the stocks be sold at anytime I choose?

Help me out here guys I have no idea how to do this!

prattrc · prattrc's Garage

If you go through an online brokerage, you shouldn't have a problem buying just 10 shares. Some houses require even lots of 100, but my buddy buys small lots online. Buy and hold.

Sergio · 11-19-2001, 02:23 AM

you can go to etrade.com or ameritrade and open an account, but keep in mind that buying those shares is going to cost you between 10 and 15 dollars, thats the cost of a transaction.... you will also have to pay 10 to 15 dollars when it comes time to sell...So you already 20 to 30 down on this stock.. It will have to go up 35% for you to make a profit, and even then youve made 5 dollars. A good rule of thumb is only invest money you are sure you are not going to need for the next three years. If you are just trying to make a quick buck, go to vegas and bet on red after the roulette wheel comes up black 6 times in a row.

THIS IS IMPORTANT:: If you are wanting to invest small sums periodically, look into a no load mutual fund or just keep it in a money market account on etrade etc... until you have enough in there to make purchases that will result in profits on smaller swings in the stocks price... 10% gain @ $100 is $10.00 minus transaction fee. 10% gain @ 1000 is $100.00 minus transaction fee. So only invest when you have enough to make it worth while.

Last time I checked, my money market account was paying around 5.25% intrest, I leave the money there until im ready to buy or short something...Please be aware that there are literally thousands of variables that will effect the market and nothing is ever as easy as it looks.. Be careful, and have fun..

Planter91C2 · 11-20-2001, 05:47 AM

[QUOTE]Originally posted by Sergio
[B]THIS IS IMPORTANT::
Last time I checked, my money market account was paying around 5.25% intrest, I leave the money there until im ready to buy or short something...

i see you haven't checked your interest rate in a very long time! money market rates are about half that now