How Do I Start Investing? How Do I Buy a Stock? | Ask A Fool

In this edition of “Ask a Fool,” analyst Austin Smith answers the question “Where do I start? How do I choose and purchase a stock?” He defers to the proven Peter Lynch model of buying what you know, which means investing in companies that you personally understand and that have relatively transparent business models. For beginning investors, some popular stocks with easy-to-comprehend business drivers include McDonald’s (NYSE: MCD), Starbucks (Nasdaq: SBUX), and Coca-Cola (NYSE: KO).

Once you’ve identified a stock you’re committed to, the next step is to open a brokerage account. Austin provides some popular companies as examples. You’ll need your stock’s ticker symbol, which can be found easily with a Google search, or by typing the company name into the search box at http://www.fool.com. Decide on the number of shares you’d like to buy, and then simply call your broker or use their online interface to place a trade.

To compare online brokerages side-by-side and to learn more about what’s involved with opening an account, visit Fool.com’s “How to Invest” hub: http://bit.ly/17nlnx6

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Do you have a question about stocks, investing, a specific company, managing your money, or any other aspect of the financial world? Simply email AskAFool@fool.com and we’ll do our best to get it answered!

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Comments

HADESHATESZEUS says:

Cooleo

mimiculmore says:

Thank you! Straight to the point and is exactly what I need to know for someone looking to get into stocks

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proud ethailander says:

how do you be able to tell what company own which stock . i know this scrip are very old . i ask any way . i now interesting in one stock . but dont know who own it . or where to get them .

lol says:

wow everyone else has made it seem so complicated. this was easy. now what do u do after you’ve purchased shares??

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Joyce Adegboye says:

Hi i want to buy a stock from a broker, do have have to pay $500 every month towards my stock or can it be a one off payment. Also do i have to sell the stock to get the return or do i get the Dividend every month

Richard Clarkson says:

I was promised a 30% growth on my capital at the end of every month so far I’ve got between 5-20% plus my fixed returns of 2% every month on my investment does anyone know any other company doing the same as I would like to diversify my portfolio.

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YeeiPlay says:

how do I buy the shares and how much money can I make after 6 months or so????

cazzelikrueger says:

Is there any way to just invest online in say S&P 500, or any market, to benefit from life time holding? Is that even possible? I just know that the S&P specifically went from $700 roughly to $2000 at the start of 2015.

Aura Master says:

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RR Anderson says:

Is there a way someone can show or tell me step by step on how to online invest?

crumikins says:

Extremely helpful!

raza ali says:

not helpful 🙁

Dustin Guest says:

how is buying bank stocks

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GustavYDrunk says:

good tutorial!

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David Devora says:

guy at 2:00 is lost

Eugene InLaw says:

I hate this system
fuck no I don’t want to pay to the broker, I only want to pay for shares

lol says:

so brokerage account.
ticker symbol in companies you know.
purchase shares.
🙂

Monica Drake says:

Very short, sweet, and informative. Helping to some anxiety.

Roxanne jones says:

for beginners–should i use LIMIT stock as opposed to Market stock?

Daddy Arnn says:

So I have to pay $500 to start?

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