Share Market Tips For Beginners
Three Different Ways to Trade Stocks
When most people think about buying and selling stocks, they envision setting up an account with a traditional broker. Whilst this is still a viable method, today there are many other options available. Particularly with the explosion of the World Wide Web, new opportunities for Making Money through investments abound.
Direct Stock Purchase Plans
What it is:
A Direct Stock Purchase Plan refers to an investor directly purchasing stock certificates from a company, rather than going through a brokerage firm. Often there is a minimum purchase amount required. Many of these companies also offer a reinvestment plan for ease.
Who this works best for:
An investor who is confident about choosing good, long-term stocks.
Single Share Purchases
What it is:
A website that offers the ability to purchase just a single stock share at a time. Investors make an initial purchase and are then entitled to buy additional certificates if they desire. The subsequent transactions are not subject to a broker’s fee.
Who this works best for: Investors who want to get started Trading Stocks but have very limited funds to work with or investors who want to test their strategy on a small scale.
Dividend Reinvestment Plan
What it is:
This refers to a cash investment. The transaction is completed directly between an investor and the company. Reinvestment plans are available and buying additional certificates, or even fractions of shares, is as easy as sending in a minimum $10 payment. Many companies offer a Dividend Reinvestment Plan, or DRIP.
Who this works best for:
Someone who wants to begin their investment portfolio slowly and cautiously and has limited funds to begin.
Not all investing needs to be done via traditional Share Market Strategies or by accumulating a large sum of start-up funds. These options may be just perfect for you to start investing.