How to buy stock shares: a short guide

Do you want to know how to buy shares on the stock exchange? If it is the first time you become a shareholder in a company, it is worth your inauguration ritual.

This short guide will teach you how to buy stock shares in 4 Steps.

Step #1 Open a Brokerage Account

American directors prefer to show frantic traders on the New York Stock Exchange (New York Stock Exchange, or NYSE), but today very few stock transactions are performed this way. Currently, the easiest way is to buy shares online through an investment account at a brokerage firm.

The procedure for opening a brokerage account is as simple as that of a bank account: fill in the online application, attach proof of identity and address, then choose how you want to fund the account. You can choose a bank transfer or the online version with the card. Fund the store, and you’re ready for the next step.

Step #2 Selection of Stock Shares

Once you've set up and replenished your trading account, it's time to move on to choosing stocks. A starting point is to research the companies you know from your consumer experience. For example, here is how you can invest in the electric car market through the stock market or in the real estate market through stocks and funds.

Step #3 How to Make the Decision to Invest in Stocks

You should start investing in stocks but do it with minimal investment. It would probably be good to buy a single share to know the feeling of owning a percentage of a listed company. It helps you find out if you are impatient or not when you suffer certain short-term losses hoping that you will make bigger gains in the long run without too much stress.

If this first acquisition goes well, you will be able to start trading more shares and investing a larger amount, and repeat the transaction as many times as you like.

Step #4 Choose with which Type of Order to Buy Stock Shares

When you place an order on the market, you buy or sell the shares at the best price available on the market. An order placed on the market is not linked to any price parameter, so the order will be executed immediately and generally consists of several small orders. That's if you do not buy a large number of shares, for example, an order of several million euros. In this case, the order will probably consist of several important orders.

Using market orders, the price you buy or sell the shares is not necessarily the same as the price indicated a few seconds ago. Indeed, Ask, and Bid prices fluctuate continuously throughout the day. Market orders are suitable for buying or selling stocks that do not have high price volatility during the day, i.e., the shares of large multinational companies are preferable to smaller companies’ claims that are more volatile.