Shares may be purchased through an intermediary - a broker who will order the investor appeal of his money in the stock market.
To do this, an investor should conclude with a brokerage company in the service contract.
Before many investors sooner or later risesthe question of the profitable investment of their funds. Some of them decide to invest in stocks, but how to do it properly, do not know. In fact there are a lot of pitfalls, and before you give someone your money, it is worth to know something about this kind of investment.
Where to buy
The Russian government at the legislative leveldefined procedure for the acquisition of securities, therefore, in accordance with the law to carry out the purchase and sale of shares can only be a legal person possessing a license for dealer activity. Therefore, those who want to invest their money in stocks, would have to apply to the brokerage company. However, the broker sells shares is not involved, it is mediation - namely, buying and selling securities on the stock exchange investor, transfers to his account profits, reporting for each of the operation. Often features a broker or dealer, commercial banks operate in the stock market.
How to buy
The investor needs to come in a brokerage firm oran investment company with a passport and sign a contract for the provision of related services. If a broker on behalf of the investor will appeal marketable securities, the investor will have to be transferred to the account of a brokerage company, negotiated in advance the amount of money. As a result, the investor will appear on the stock exchange its securities account or an account with the depository - an organization engaged in storage of the securities. Exchange will keep records of income and expenses from the investor's securities transactions, that is, to fix the number of securities purchased or sold for the money investor.
To open an account, you need to make the investora sum of money to the account of the exchange. Application can be made by telephone, but the signing of the contract for the purchase / sale of securities in the office need to appear in person. If the application is sent by fax, in response to the investor will receive a form to fill orders. All operations are carried out in non-cash form, that is, the investor receives at the hands of certificates of acquired shares - its name appears in the register of shareholders of the organization and confirmation of this will be a corresponding entry.
All further operations with these securitiessecurities may be conducted only with the consent of the investor, that is, before each purchase / sale it is necessary to fill out a transfer order, sign it and send to the broker. For every transaction the broker will receive money, usually a percentage of the transaction amount.