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Decide whether to go through an online brokerage firm or through a face-to-face broker. After evaluating a stock, decide the prices you'd like to purchase at, so you know whether to make a "market" or "limited" order. To save on broker fees, you can buy some stocks directly from the company.

Unlike mutual funds, which can be purchased in fractional units, shares of stock cannot be divided. So, the smallest number of shares an investor can buy is one share. There is a catch that could determine for investors just how many sharesthey will want to purchase - commission fees.

For stocks, one point equals one dollar. So when you hear that a stock has lost or gained x number of "points," this is the same as saying that the stock has lost or gained x number of dollars. Although one point always equals one dollar, the percentage value of one point movement can be different for two companies

Think of a supermarket when you go shopping for your groceries; under one roof you can buy pretty much anything.A stock exchange is a supermarket for the buying and selling of stocks and shares.Individual investors as well as banks and hedge funds are able to buy and sell stocks and shares on any of these exchanges. One smart way to focus on how yo

The Bid And Ask Prices Are Stock Market Terms Representing The Supply And Demand For A Stock. The Bid Price Represents The Highest Price An Investor Is Willing To Pay For A Share. The Ask Price Represents The Lowest Price At Which A Shareholder Is Willing To Part With Shares.