Where and how to buy shares
Where and how to buy shares
Shares can be purchased through an intermediary -a broker, who will, by order of the investor, appeal his money in the stock market. To do this, the investor must conclude a contract with the brokerage company for the provision of services.
Many investors sooner or later get upthe question of profitable investment of their funds. Some of them decide to invest in shares, but how to do it correctly, do not know. In fact, there are a lot of pitfalls, and before you give someone your money, it is worthwhile to learn something about this method of investing.
Where to buy
Government of the Russian Federation at the legislative leveldetermined the procedure for the acquisition of securities, therefore, in accordance with the law, only a legal entity that holds a license for dealer activities can purchase and sell shares. Therefore, those who want to invest their money in the shares, will have to contact the brokerage company. However, the broker does not deal with the sale of shares, he is intermediary services, namely - he buys and sells securities of the investor on the stock exchange, transfers to his account the profits received, reporting for each operation performed. Often, the functions of a broker or dealer in the stock market are performed by commercial banks. How to buy
An investor needs to come to a brokerage firm orinvestment company with a passport and conclude a contract for the provision of related services. If the broker on behalf of the investor will appeal in the market securities, the investor will have to transfer to the brokerage company account the agreed amount of money in advance. As a result, the investor will appear on the stock exchange his depo account or an account in the depository - the organization that holds securities. The Exchange will keep a record of the investor's income and expenses from operations with securities, that is, record how many securities were bought or sold for the investor's money. To open an account, the investor needs to deposit a certain amount of money into the account of the exchange. The application can be made and by phone, but to sign a contract for the purchase / sale of securities in the office you need to appear in person. If the application is sent by fax, the investor will receive a form to fill out the order in return. All transactions are carried out in non-cash form, that is, the investor will not receive the certificates of the shares purchased by him - his name will appear in the register of shareholders of the organization and confirmation of this will be a corresponding entry. All further transactions with these securities can be conducted only with the consent of the investor there is before every purchase / sale he needs to fill in the form of the transfer order, sign it and give it to the broker. For each operation, the broker will receive money, usually a certain percentage of the transaction amount.
