stocks and investing, With what to Begin?
Share - a security, which gives the right to its owner to own some shares of the joint-stock enterprise (company). This definition is already out of date.
Today Share, for the most part, is not paper, but some recording, registration of property right for the share of the enterprise. This recording can be done both in electronic form, and exist on paper.
Share entitles its holder to participate in the management of the company (the Board of shareholders or shareholders meeting).
The shares are bought and sold on the stock exchange. But the operations on the stock exchange have the right to conduct only registered brokers. So, for the purchase or sale of the shares, and other securities, it is necessary to use the services of the mediator, that is a broker, opening his brokerage account. About how to choose a broker I will write in the following articles.
Shares give the opportunity to the owner to receive two types of income: dividends and margin (the difference between the buy and sell price). Remember, that the dividends, with rare exception, are quite small and are often even less than Bank Deposit interest rate. And the margin (the price difference can be not only positive, but also negative.
To sell Shares on the stock exchange, it is necessary to choose the broker (the company which provides the services of the sale and purchase of securities on the stock exchange) and to conclude a contract for brokerage services, open a brokerage account and fill up his money, intended for the purchase of Shares. With this account will be the payment for the purchased shares, and also transferred the money received from the sale of Shares.
In addition, the broker opens the client DEPO account that contains securities. Trade stocks can be both over the Internet and by phone (request broker).
More interesting, of course, to trade through the Internet, as well as the Internet-trading system have a lot of other possibilities, in addition to execution of orders for purchase or sale of Shares. In these systems in a mode on-line, you can keep track of quotes, check the balance of its portfolio, to study price charts, read the news, Analytics, etc.
For today in Russia there are two suitable sites for the novice investor with a modest income, which wants to trade stocks - MICEX and RTS.
In these exchanges is committed by the greatest number of deals with Russian shares (i.e. the liquidity of the shares, in particular of the «blue chips», very high)and the sizes of lots (the number of shares to be acquired) allow the purchase of Shares of almost any of the Issuer (the participant of the market), with a few exceptions.
You can, of course, start to trade and on foreign exchanges, but this task is only for professionals, as rates are already higher.
Before you start to trade on the securities market it is necessary to understand the basic rules, to gather information, investigate existing strategies, etc.
