How to Buy Stocks for Beginners: 4 Easy Steps to Get You Started

Investing in stocks for the first time is a daunting task. It can be scary because real money is at risk of loss. 

You Probably Already Own Stock

Most workers probably own stocks indirectly through their company’s retirement plan, whether a pension or 401(k). 

Basics of Stocks

A stock is also known as a share and represents the percentage ownership of a company. For example, if you own ten shares of a company with 100,000,000 total shares, you own 0.00001% of the company. 

Risks for Stocks

Stocks are not risk-free. Most people are familiar with low-risk savings accounts and Certificates of Deposit (CDs) that are, in many cases, insured by the Federal Deposit Insurance Corporation (FDIC). 

Pick a Brokerage Firm

Start buying stocks by picking a brokerage firm. In the past, an investor had to deal with a broker who placed a buy or sell order. Today, orders are placed directly by the investor online. 

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