Buying and selling shares may seem intimidating for the investors who are just learning the tricks of the trade. But once you get a little experience it can become easier comparatively. Here's a little guide to make your task simpler.
Courses offered...
There are many organisations that have courses for those who are interested in learning the finer points of trading in shares. ASX also has courses online.
Trading Account...
For buying or selling shares, many brokers advise you to open trading accounts. It is nothing but a cash management trust that has adequate resources for you to carry on your trading. Once you buy the shares, the brokerage fee and stamp duty is automatically minused. In Australia, you have to follow T+3 system. In this you have 3 business days to settle your trade from the day you have bought or sold your shares.
Sponsors...
You can either be broker sponsored or issuer sponsored.
If you are
Broker Sponsored, then the broker gives you a Holder Identification Number (HIN) for all the stocks you have.
When you wish to buy or sell your shares, you just need to tell your broker and the trade can take place then. If you want, you can have more than 1 broker at a time.
If you are
Issuer Sponsored, then you will be given a Shareholder Registration
Number (SRN). But a SRN is meant only for 1 company at a time. If you have invested
in more than 1 company, then you will be issued different SRNs.
Research before buying shares...
It is very important to do your research before you buy your shares in the market.
-You can go through the papers, see which shares are doing well.
-Go through the Company's annual reports, the ones in which you plan to invest.
-Talk to your friends or family who have experience in trading in shares. Take a few pointers from them.
-Remember not to ignore any advice. Ultimately it's your decision, so don't hurry and
consider everything.
Buying Shares...
-You can buy ordinary shares, preference shares, no matter which share, you have to do it through your broker.
-You need to instruct your broker and he will place your order in the market. You can inform your broker any time but the stock market operates only Mon-Fri between 10 a.m. to 4 p.m.
-If your broker has direct-through trading, then the procedure of buying shares will happen immediately. However, for some it can take up to half an hour.
-You can opt to buy shares
at limit or
at market. At market means, your shares will be bought at the value, at the time of your order. At limit means, you can limit the time in which your share has to be bought. If not bought within the specified time, your order will be cancelled automatically.
-Most of the shares are bought online now days.
ffffff
000000
000000
000000
