How to Buy NYSE Listed Stocks
Most large corporations in the United States, as well as many foreign firms, have their stock list on the New York Stock Exchange, or NYSE. Listed companies on the NYSE must meet Securities and Exchange Commission and NYSE regulations for financial performance, reporting and reserves. Shares traded on the exchange have a high liquidity, meaning they are easily bought and sold to other investors at a publicly disclosed price. Shares are bought and sold on the NYSE through a member, typically a stockbroker. Expect to pay either a fixed or a percentage fee for brokerage services.
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Instructions
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Open an account with any major stockbroker. Brokers can be full-service, discount, or online, and each offers different levels of service at different prices. Choose the type that best matches your level of experience and comfort.
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Fund the account with sufficient money to cover the price and commission of your anticipated stock purchase. Most brokers will not allow you to trade until they have received "good funds," meaning that your check or wire transfer has cleared.
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Please an order for the stock you wish to purchase. Depending on your choice of broker and accounts, this can be done online, in person, or by telephone. You may place a market order, which is executed immediately, or a limit order, which is executed only when the stock falls to a certain level. A limit order can be set to expire in a fixed period if not executed, or it can be valid until canceled.
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Examine the confirmation you receive when your purchase was executed, and verify that the order was executed correctly. Keep this information, as you will need it for tax purposes.
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Tips & Warnings
Many brokers have no minimum purchase amounts for stock, but fees may be assessed on a per-trade basis. Limit orders can have higher fees than market orders.
References
Resources
- Photo Credit stock exchange image by Christopher Walker from Fotolia.com
