To start a stock exchange business, create an account online with a brokerage, and link it with your bank account; set your goals strategies to achieve them; and research suitable stocks and buy them, says Chron. Research and gain knowledge on stock market and industries before attempting this business.
To set up an account with a brokerage, you should have your taxpayer identification number or a Social Security to do so, according to Chron. Your beneficiary may also be a requirement for an Individual Retirement Account. You need to pay a transaction fee, which varies from one brokerage to another.
Linking the brokerage account with a bank account enables the business to receive funds from your bank account for smooth running, explains Chron. Be sure to have all the required information before linking the two accounts. Once the accounts are linked, transfer enough funds into the trading account to cater for transaction fees and other charges in order to facilitate the achievement of your goals.
Goals should be clear and the strategy for achieving them should balance the goals and risks, notes Chron. For instance, investing in emerging stocks may be suitable for investors who aim to grow quickly and have the ability to absorb potential losses from such investments. Researching individual stocks helps determine stocks that comply with your strategy by checking the transaction costs involved, the stock security and the dividend payment policy.