How I Can Buy Stock
Buying stock means purchasing a share of ownership in a public company through a brokerage account. The process is accessible to almost anyone with an internet connection and a small amount of capital, but the choices you make upfront — which broker, which account type, and which stocks — shape your experience and costs for years.
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Choose a Brokerage Account
The first step is opening a brokerage account, which acts as an intermediary between you and the stock market. You can choose from traditional full-service brokers, online discount brokers, or newer commission-free trading platforms. Compare fees, account minimums, research tools, and the quality of the trading app before deciding. Many reputable brokers now offer fractional shares, which let you buy a slice of a high-priced stock with as little as a few dollars.
Fund Your Account and Research
Once the account is open, deposit money via bank transfer, wire, or mobile check deposit. Before placing any trade, research the company: look at its financials, earnings reports, competitive position, and valuation metrics. Decide whether you want a market order, which executes immediately at the current price, or a limit order, which only fills at your specified price or better.
Place Your First Trade
Enter the stock ticker symbol, select the order type, specify the number of shares, and submit. The trade typically settles within two business days, at which point the shares appear in your account. You can then choose to hold for the long term, sell when your target price is reached, or reinvest dividends automatically.
Key Considerations
- Account type: taxable brokerage versus tax-advantaged retirement account
- Fees: commissions, inactivity fees, and fund expense ratios
- Order types: market, limit, and stop-loss orders
- Fractional shares for smaller portfolios