HOW TO BUY SHARES?

CHAPTER 14

HOW TO BUY SHARES?

We have already discussed this before, but just to refresh it further, in ancient days dealing in trade market was only the privilege of the rich people, but now it is not so a common man is also a part of the trade market.
You can buy shares through any of the following ways
Stock broking through bank, custom stock brokers over the telephone or on line trading through internet.
If you have no idea how to go about investing and really need a lots of help then in that circumstances , you can go for ADVISORY SERVICE , where in the stock broker looks in to you individual account and advices you on buying and selling
But , if you wish to hand over the entire thing to someone else, then in that case you can go for DISCRETIONARY SERVICE, in this there is certain strategy between you and the broker which is agreed upon and the stock broker takes all the decisions of buying and selling on your behalf with your money. This type of service risk factor is more.

You can categorize the brokers in two major types,

Discount brokers - these brokers will collect a certain amount of annual fee form you and will only carry out what has been told to them, over the phone, in person or on the internet. They would give ZERO advice to you.
Full Service brokers- these brokers give you recommendations and advices on which stocks are good to buy, which will yield profits and which stocks are overvalued. They provided these services with a little higher fees and sometimes even commissions