How to buy shares for a private person

To date, it is very in demand to invest money in securities, the main purpose of which is passive income. The difficulty is that many people do not know the full range of actions aimed at making a profit in the sphere in question. The part of the population interested in this variant of earnings does not know how to buy shares.

What is the sum of the income from securities

There are several options for the above-mentioned earnings, namely:

1. income from the difference in prices for the purchase and sale of shares;

2. profit from temporary borrowing of these securities from stock brokers with subsequent sale at a more favorable rate and a return purchase at a lower quotation;

3. Direct earnings in the form of dividends, that is, part of the profit that is paid to shareholders.

How and where to buy shares

It is always possible to purchase the securities under consideration through brokerage services. Using this service, you can freely use all the existing trading floors in the world, in particular, the stock markets of countries such as the USA, Europe, China, India, Australia, Brazil. There it becomes possible to implement the entire complex of commercial activities with available securities.

A number of procedures are required to start trading, in particular:

1. Open the corresponding account with the desired broker.

2. Deposit a certain amount of money to it.

3. Select the appropriate tariff plan that opens access to the desired trading floor.

4. Select the necessary stocks.

5. Check the current rate for them.

6. Leave application for purchase.

Is it possible to highlight the advantages and disadvantages of this variant of earnings on the securities in question

About how you can buy shares, it became little known, and therefore it is worth moving on to the moment revealing the positive and negative aspects of investing in them.

Factors supporting the positive outcome of investing in these securities are:

1. The presence of a significant potential for good returns.

2. Passive earnings, that is, there is no need for physical labor.

3. Possibility of trial investment of insignificant sums.

4. Certificate of ownership of a part of the company whose shares were acquired.

5. The possibility of earning their speculation.

Evidence of a negative aspect of investing in shares are:

1. A sufficiently high risk level, if there is no theoretical and practical knowledge of the exchange methodology.

2. Availability of a brokerage commission independent of the outcome of trading.

What possible negative points can accompany this type of earnings

If a decision is already made how to buy shares on the exchange, it remains only to familiarize yourself with possible risks and ways to minimize them.

The primary task, which must be solved before the bidding, is mastering the practical skills of predicting possible cases of unfavorable outcome.

Factors affecting the quotation of shares are:

1. Directly proportional dependence of the value of these securities on the generated profit of the respective company. Nevertheless, with the identity of certain economic indicators, the quotation of shares may significantly differ. The popularity of the securities in question increases with respect to the availability of technical standards, corporate management and respect for the rights of shareholders, as well as the reputation of the company.

2. The news line at the time of bidding can both harm the course, and greatly contribute.

3. Statistics of the activity of the relevant enterprise, which forms certain opinions among potential investors.

4. Dependence of Russian stock markets on the level of world stock indices.

What New Stock Market Players Should Know

The main asset on the well-known trading floors are various securities, a number of questions follow from this, one of which is the question of how to buy shares to an individual.

To answer it, it is necessary to understand the fact that the largest exchanges do not have such rights that would allow them to sell securities to individuals without conducting a special registration procedure. The reason for introducing such restrictions is both the security aspect and monitoring of transactions.

There is an opportunity to become a completely independent private investor, of course, purely theoretically, by pre-establishing a legal entity in its name and registering it on the exchange. This procedure involves the payment of an initial contribution, which is equivalent to the average annual budget of a small enterprise. Thus, this option is not always appropriate. Therefore, many citizens turn to the services of an intermediary, which can explain in detail how an individual can buy shares on acceptable terms.

Who are the brokers?

Exchange intermediaries are, as a rule, firms professionally engaged in stock trading. Thus, it can be large companies that legally sell and buy shares.

Brokers act as intermediaries between three exchange participants, in particular:

1. The stock market itself, which is the guarantor of all kinds of transactions.

2. Companies-issuers, that is, firms that issue shares.

3. Investors conducting operations of a speculative nature.

So, the answer to the previously asked question about how to buy shares to ordinary citizens will be the conclusion of a contract with a brokerage company.

This option is appropriate because there is no special registration and payment of the initial payment. This is made possible by buying and selling securities by the broker on behalf of their clients.

For the same reason, attracting exchange intermediaries will also help solve a problem, the essence of which is how to buy shares for a private person.

It would be superfluous to note that securities of Russian enterprises that are bought and sold on specialized exchanges are issued without a documentary certification. That is, the new owner is not provided with any certificate of purchase. However, all operations with shares are lawful in relation to Russian law. From the moment of their alienation, the information on the new owner is entered in the relevant register of shareholders of the company whose securities were purchased. Accordingly, there is an electronic record confirming the ownership of certain stocks.

Availability of the purchase of shares in OAO Gazprom

Quite often you can hear the question of how to buy shares of an enterprise of the Russian energy sector. In particular, the famous gas company. Most often, they are acquired or sold through a professional participant in the stock market. Usually this kind of service is provided by investment companies and commercial banks.

Another option for the acquisition of the securities in question, which allows answering the question of how to buy shares in the oil and gas sector, is their receipt in the Gazprombank branch.

This method is associated with a number of advantages and disadvantages, namely:

• A positive aspect is manifested in the absence of payment of commission to intermediaries;
• The negative side is poured out in the presence of the internal rate of the relevant bank for the repurchase or sale of shares.

It is attractive for those who want to own a profitable asset, but do not want to participate in the auction.

How to buy foreign shares

A very difficult situation is observed in the moment relating to the purchase of securities by Russian investors. The option of buying shares of foreign companies is not at all easier, even on the contrary.

Still, there are several ways how to buy shares of foreign companies, more precisely:

1. Receiving by a future investor a license issued by a national bank authorizing to invest abroad. It is required to determine in advance which stocks will be invested and how much money it can be spent on. It will be necessary to collect the necessary package of documents for each transaction separately and send it for consideration to the head office of the national bank. Further it is necessary to wait for an answer, which will be ready in no less than 30 days. This option is appropriate for those who want to invest a significant amount in stocks and do not intend to put them up for sale, at least in the near future.

2. Conducting trading via the Internet on a foreign exchange. Here, a foreign broker is involved. Further, the scheme is the same as when buying shares through Russian intermediaries. It is important to know that such a method is not legal under Russian law.

3. Attraction of foreign companies on the Internet, which will play on the foreign exchange on behalf of the client. In this case, you will need to install their trading terminal on the customer's computer and deposit funds into the account. This option entails great risks and is also not legal.

The choice of how to buy shares of foreign companies, to make only to investors.

How to avoid errors during trading

There is an endless variety of effective ways to play on the stock exchange, in particular:

1. Formation of investment portfolios that make it possible to compensate for unsuccessful investments by means of successful ones.

2. Using special strategies to minimize risks.

3. The use of orders, allowing timely to automatically respond to the market situation, etc.

Thus, with the help of modern technologies, you can participate in the bidding remotely, that is, online, due to the continuous access to the stock exchange via the Internet. It remains only to correctly predict the behavior of the stock price, which is relatively easy if you develop analytical thinking.

How to choose the right broker

Under Russian law, individuals can purchase shares on the exchange exclusively through an intermediary and only. It is worth seriously choosing a broker.

The main winning features of exchange intermediaries are:

• Availability of the maximum reliability rating;
• Providing the client with free market analytics through daily electronic mailing or telephone consultation;
• Acceptable level of commission, etc.

Levels of liquidity of shares

There are three tiers of shares:

1. The first level includes "blue chips". The issuers belonging to this echelon form a group of domestic companies with assets in excess of $ 20 billion. Thus, they occupy a significant place in this industry. Examples include such large companies as Sberbank, Lukoil, VTB, Gazprom and others. To buy their shares is available during the trading session. This echelon is characterized by a stable yield and impressive competitiveness.

2. The second level is represented by companies that have assets not exceeding 10 billion US dollars, in particular: Aeroflot, Rostelecom, Baltika, etc. Investments in these shares are always appropriate, in view of their possible transfer to the first echelon. The main advantage is the stability of the growth of quotations.

3. The third echelon includes companies whose securities are characterized by their price attractiveness and the potential opportunity to receive super-profits for them. This includes firms that came to the Russian market relatively recently and whose assets reach $ 100,000. This echelon is characterized by significant risks combined with minimal liquidity, but a potential opportunity for revenue growth.

Entering the stock market is not so easy, but you can always buy shares.