Stock – Buying and Selling Basics – Or What Do I Do in the Stock Market?
There are several ways to buy stocks when you want to buy them. These same terms apply whether you are talking to your broker or on-line transactions.
The first word is purchased in the market. This means that you are willing to pay the current stock price, determined by current demand. If you really want to buy stocks at any price and now, this is the way to do it. You are giving up control of the market. Your broker, or the program will snatch the current market price of the stock you want. For example, you want to buy 200 XYZ at market price. When you first look at the company and do your due diligence, the price is $ 5. This seems like a good starting point, so the next day you put your market order. To some people you do not know, see the same stock and place an order. The price goes up to 7.50, so this is where you buy your stock. The total cost, $ 7.50 x 200 shares plus trading fee $ 10 = $ 1510. If you really want stocks, and 7.50 is also a good price for your model, you are proud of the 200 shares of the owner. If you do not want to spend $ 7.50, too bad, you still have the stock. How can you avoid that?
The next term is called a limit order. This work is similar to the market order, because you still say you want 200 shares, but you are called the price. If you place an order and say 200 shares per share limit of $ 5, then $ 5 is the highest price you will pay. You are limiting the price. If the price goes up, you will not get the stock. You can also indicate the order is good until you cancel the order, or until the end of the day, which gives it a defined term. You can define the timeline where you would like to execute the transaction. For a limit order, your cost will be $ 5 X 200 shares plus a transaction fee of $ 10 = $ 1010. However, if the stock does not see the $ 5 price again, the transaction may never happen. On the other hand, if the price is below $ 5, when you place an order, you will get a lower price and the total cost will be lower.
On the other hand, of course this is selling the stock. You must first realize that there are two types of sellers. The first one that you are willing to pay is the price. The difference between the two is your VAT rate.If you keep a stock for less than a year, it is a matter of time for you to hold a stock for a period of 365 days.That is the difference between the two is your VAT rate.If you keep a stock for less than a year, If you hold a stock for more than a year, its tax is about 15%. This is to increase the stability of the market. If people do not have the money in their minds Tax rates, the market will be more unstable. More information on short-term and long-term growth Check out this
Another thing you need to remember is the cost involved in your business. If you are a small investor In particular, this can hit you well. For this discussion, I will deduct the tax from the equation. If you buy stock A $ 10 per share, get 10 shares; your total cost is $ 100 (I realize this Is a low number, but it's just for illustrative purposes.) Now you add the transaction price; in e-commerce is $ 12.99. So instead of $ 10 per share, you have $ 11.29 per share.
$ 100/10 shares = $ 10 per share
($ 100 + 12.99) / 10 shares = $ 11.29 per share
So here you are one year later