How to buy stock: A basic introduction for first-time investors.

Posted on October 12, 2022Comments Off on How to buy stock: A basic introduction for first-time investors.

One way companies can raise money to fund their business is to sell stock to the public. When people buy stock in a company, they’re betting that investment will grow over time, along with the company in which they’re investing.

As of May 2022, Gallup reports 58% of Americans own stock. One reason for this is the stock market’s increased visibility and accessibility, thanks to a number of trading apps like Robinhood, Acorns and more which have driven the cost of trading to zero and claim to make trading easier for the average investor.

If you’re a first-time investor or someone who’s just curious about the market, we’ve got the basic information you need.

Woman looking stock market Data on smart phone

How to buy stock

According to Forbes, the simplest way to set yourself up for stock purchasing is to open a brokerage account. There are many different types of accounts you can open.

If you’re saving for your retirement, it might be a good idea to open an Individual Retirement Arrangement (IRA), a type of account that gives you certain tax benefits while limiting the types of actions you can take and the amount you can invest each year. 

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Comments Off on How to buy stock: A basic introduction for first-time investors.