Yaanyuur meat/steak.

[zingii]

Sorry about the misleading title as the original one did not attract readers who could have potentially gave me an advice. Now since you are here, dont hesitate to give any advice that you think might help.
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I am interested in buying a stock to test the water and see if i could return a profit. So my question is how do you go about becoming a share holder and buying a stock?

your help/advice is needed if you know what you are talking about.

http://www.nasdaq.com/markets/most-active.aspx

[zingii]

the number of views before the title change (11).

am pretty sure ill get more views with this title and
maybe the needed answere am looking for.

[accident]

Bump.

[zingii]

In ten minutes the number of views doubled but i still await good souding advice.

[Mondey]

i know nothing about business my friend.

[accident]

@ the title. I don't know too much about this. I tried Currency trading (Forex), there was a website with dummy account where you traded currencies. It was for practice, I never got around to do the real thing. In any event read books about it sxb, the best line I heard was "veteran traders get rich because of people like us (with limited knowledge) trying to trade".

[zingii]

The original title did not attract people (Buying a Stock).

I had 11 views 4 being me.

[anonymousfaarax]

If you are located in the U.S im not too sure on the specifics over there but I assume the cheapest and fastest way would be to register with an online, execution only broker. There are many of these kinds of brokers with varying prices depending on the the services they offer.

You can make money two ways owning shares: capital gain i.e. increase in share price OR/AND dividens.

The way it works is that they charge you a fee for executing your deals. For every buy/sell deal you make, they will charge you a standard fee (regardless of volume) for executing that. Most offer a discount if you are a frequent trader e.g. $10 per deal for first 5 deals pm but only $6 per deal in the same month thereafter.

Some brokers will only allow you access to U.S stocks only, others U.S plus Canadian stocks and others U.S, Can, U.K, E.U etc. They become more expensive depending on which/how many markets you would like access to. U.S only might be $8 per trade; on the other hand U.S/Can/E.U might be $15 per trade. It is often cheaper to have two accounts with two different trypes of broker. For example, I may have a U.K only execution broker (X.O) charging me £5 per trade that I only use for trading U.K stocks; and have another account with a U.K/U.S/E.U execution only broker who charges say £11.99 per trade that I only use for U.S and E.U trades.

The way these online brokers work is that they hold the shares for you in their name but you have a beneficiary account with them where you will have electronic certificate to 'your' stock. It is all legal and legit it is just how it works. If you want to have a paper certificate and be the 'outright' owner of your share, you will incur a charge to have this paper certificate made e.g. $20 per line of stock; note this would only make financial sense if you owned large amounts of a pearticular stock.


If you want to move brokers or close your account with a trader in any event, and (e.g. the T&C of your account is changed) you might well want to move the shares your broker holds to another broker), this will always cost you e.g. $20 per stock line. It is often cheaper and more convinient to (a) open another account with another broker then allowing you to either keep you old stocks with your old broker so that you avoid paying transfer costs or (b) if you no longer intend to use this account transfer all your stocks but leave your account to remain open so as to avoid the charge, and there is always a charge, of closing an account. You will just end up with say two accounts with different brokers.

As I said I dont hold U.S stock (yet) and I am not familliar witht he regulations and systems over there. You are better off speaking to someone over there (check your PM). I have not clicked on the link you posted but i'll check that out later.

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The broker is like an online bank that allows you to (a) deposit and withdraw cash and (b) buy and sell stocks (shares as they are known in the UK). Steps:

1) You need to create an account with you preffered type of execution only broker (you may consider other types of brokers/hedge funds if you have large amounts of money to invest). Consider their charge per trade, markets they offer access to, their reputation, speed and ease of use of their trading platform, support and cusomer services they offer, informations/guides/analysis they provide, always read some online reviews.

2) Link a bank account/debit card with your account and transfer/deposit some money into your account.

3) Research stocks/industries etc. Everyone has their own way of doing this.

4) Buy stock

5) if you want - Sell stock. The proceeds are deposited into your account with your broker - you can then transfer this money to your bank account so that you will have access.

[anonymousfaarax]

I am interested in buying a stock to test the water and see if i could return a profit. So my question is how do you go about becoming a share holder and buying a stock?

There is no question that there is profit to be made in trading stocks. It just depends on what stocks you trade as some will do well and others not so much. For example, if you had bought shares in BP in the hight of its oil spill crisis, when its shares plummeted, you would have made very large returns by now.

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I am going to put a question of my own out there. If I was to buy shares in a company that trades in haram industry, but I only made money from holding these shares/stocks through capital gain rather than dividends, is this money haram ? The logic is that the profit you are making is the difference between how much you paid for the share and the excess that others are willing to pay - you have taken no money from the haram proceeds of the company in question. The excess that people are willing to pay depends on the expected future cash flows and goodwill value of the company. I would be interested in your responses.

[anonymousfaarax]

Zingii, one more thing, im not sure, but I dont think you get voting rights/invitation to AGM if you dont own paper certificate of shares. Broker can make a special request on your behalf for you to get 'tickets' to AGM as an observer though. Maybe someone else can clarify this.

[Dudaaye]

[Dudaaye]

[youtube]b4OVKvNrLsY&feature=fvwrel[/youtube]

[zingii]

anonymousfaarax :
The insight you gave me broadened my understanding of how it really works. You (perfect-order & accident) all gave me information I had not known before. I thank you all for educating me on subject I had known so little about. Now its up to me to do my own research, equipped and armed with the information and knowledge you three provided me with.


Dudaaye:
At the moment I cant view the video you posted as I am at work.
I’ll try to check it out once I get home (insha-allah