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Commonly Asked Questions about Stock Purchase

If you buy a companys stock, you become a part owner and youll generally make money if the company does wellor lose money if it doesnt. Depending on how established the company is, most of the money you make will come either through increases in share price or through dividend payments.
Once a companys stock is on the stock market, it can be bought and sold among investors. If you decide to buy a stock, youll often buy it not from the company itself, but from another investor who wants to sell the stock. Likewise, if you want to sell a stock, youll sell to another investor who wants to buy.
You can open an account with an online brokerage, a full-service brokerage (a more expensive choice) or a trading app such as Robinhood or Webull. Any of these choices will allow you to buy stock in publicly traded companies. However, your bank account or other financial accounts will not allow you to purchase stocks.
When you buy a companys stock, youre purchasing a small piece of that company, called a share. Investors purchase stocks in companies they think will go up in value. If that happens, the companys stock increases in value as well. The stock can then be sold for a profit.
When You Buy Stock Through an IPO, Your Money Goes To the Company Going Public. If you buy stock through an initial public offering (IPO), its a fairly simple exchange. You, the buyer, pay the company issuing the shares whatever price it charges for a slice of the business.
Purchasing the shares of a company.
Buying and selling shares through a stockbroker Establishing a relationship with a broker is easy. Each broker will have a slightly different process, but most require you to establish a client account. They may also need bank account details for the lodgement or receipt of trading proceeds.
Heres a step-by-step guide to start your stock investing journey. Open a brokerage account. Decide which stocks you want to buy. Decide how many shares to buy. Choose an order type. Place the stock order with your brokerage. Build your portfolio.