How to Buy & Sell Stock

by Mark P. Cussen

Overview

The hopes and dreams of millions of investors have depended on the performance of both individual stocks and the market as a whole. Buying and selling stock can be either a conservative or a risky proposition, depending upon various factors. But the procedures for buying and selling are the same in many respects, regardless of which you are doing.

Stock Exchange

Step 1

Open a brokerage account by depositing either cash or stock certificates. Be sure to title the account the way you want it to be, such as in the name of your trust or as an IRA account.
Step 2

Specify the number of shares that you intend to buy or sell. Be sure that you have enough cash or shares in the account to cover your trade. Specify the price that you are willing to buy or sell at. If you are willing to take the current market price, then list "market" as the price. If you are only willing to buy or sell above or below a certain price, then enter the minimum or maximum price on the computer screen or with your broker.
Step 3

Add any special conditions that are appropriate for your trade, such as "fill or kill" (if the order cannot immediately be filled completely, then cancel it) or "all or nothing" (only fill the order if it can be filled completely). There are other conditions that can be added as well; either your website or your broker can list them for you.
Step 4

Watch the screen or get the execution price from your broker. Make sure that your trade executed at either the price you specified or a better one. Contact your broker or website immediately if that does not happen.
Step 5

Send in either the stock or the cash to cover your trade by settlement date if they aren't in the account. Failure to do this can result in your account being frozen. Continued failure to do this can result in your trade being busted.

3
Money to Invest A Brokerage Account
Money to Invest
A Brokerage Account
There are many nuances to placing stock trades, and beginners would be wise to use a broker until they become familiar with the process and terminology.
There are many nuances to placing stock trades, and beginners would be wise to use a broker until they become familiar with the process and terminology.