Question Hello, I a college student and I thinking of buying one or two stocks of a company that I've chosen. I'm not asking which stock to buy but since this is my first time, I'd like to get some advice on how to buy a stock? Do I go online? Which website would be reliable? If I buy it online to I get mailed the stock certificate? oh yes, I'm not s US citizen, that's not going to complicate things, right? Help.
Clueless about buying stocks,
Lindsey
Answer Hi Lindsey-
You should check around at the different online discount brokerage firms to see which would suit you. The process is pretty simple, you open an account, fund it with some cash and then you can place orders to buy and sell stocks online. Most people don't bother with stock certificates, it's just another hassle and most firms charge you to issue them.
These days it's hard to find a brokerage firm that won't hit you up for annual or even quarterly account service charges if you only have a holding or two, but they may be out there. You might want to check with TD Waterhouse, ETrade, Scottrade. The site www.gomez.com used to do reviews of all the online brokerage sites periodically, check that as well.
Another alternative with some stocks is to buy the stock through a dividend reinvestment plan (DRIP) or direct purchase plan. Not all listed companies have these but some of the ones that do are free services. A listing and explanation is available at http://invest-faq.com/articles/trade-drips.html
That site also has some ideas on cheap online brokerage firms.
I don't know about the implications of being a non-US citizen. You'll be able to open an account but you might have some additional documentation requirements. Best advice is to ask the firm that you open an account with.
