How do you buy stock in a company?


Quick Answer

To buy stock in a company, sign up for a brokerage account, search for a desired company and then choose the type of order to place, advises Chron Small Business. A stock represents ownership shares in a company, explains the Financial Industry Regulatory Authority.

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How do you buy stock in a company?
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Full Answer

Brokerage services such as OptionsHouse, TD Ameritrade, Scottrade, Schwab and Fidelity all offer the capability to buy and sell stocks, according to NASDAQ. These brokerage services all have different commissions and minimum deposit requirements. Sign up for one of these brokerages by visiting the associated website and completing the registration process.

Once a brokerage service is chosen, search for a particular company. Search queries can be performed by entering a company name or a specific ticker symbol. A ticker symbol is an identification tag for a stock, explains the FInancial Industry Regulatory Authority. The number of letters in a ticker symbol determines the exchange on which that stock is traded.

After the company is found, enter either a market, limit or stop order, states Chron Small Business. A market order is an offer to buy a stock at the best available price, notes Schwab. A limit order is a method of placing a bid for a specified price or better. A stop order is a command to buy a stock only at a specified price. Once a stop order is executed, it becomes a market order.

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