Those are just two of the most well-known electronic brokerages, but many large firms have online options as well. Once you open an account you will tell your broker how many and what types of stocks you’d like to purchase. The broker executes the trade on the your behalf. In turn, he or she earns a commission, normally several cents per share. Online trading sites typically charge lower commission fees, because most of the trading is done electronically. After selecting the that you want to purchase, you can either make a “market order” or a “limit order.” A market order is one in which you request a purchase at the prevailing market price. A limit order is when you request to a stock at a limited price. For example, if you want to in Dell at $60 a share, and the stock is currently trading at $70, then the broker would wait to acquire the shares until the price meets your limit. While purchasing through a broker has its advantages, there are other ways to . You can purchase stocks directly through the company. Buying stocks online. 71132
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