|Category: Beginner||Posted on: July 13, 2011 by: pseacademy_administrator||Comments: 1||Attachments: 0|
How to start investing in STOCKS?
Getting started in the stock market is a simple process.
1. Choose your STOCKBROKER.
At present, there are more than a hundred stockbrokerage companies to choose from.
When you choose a stockbroker, you need to consider the type of service you will require and who will best suit your needs. You should remember that your stockbroker is your financial agent that will help you make your invested money grow. Stockbrokers are also classified as traditional or online based on the services that they offer.
Traditional brokers are those who assign a licensed salesman to handle your account and take your orders via written instruction or through a phone call. Online brokers, on the other hand, are those whose main interface with their customer is through the Internet.
The full listing of stockbrokers is available in the PSE website www.pse.com.ph.
2. Open a TRADING ACCOUNT with your chosen stockbroker.
The next step is to formally open a trading account. Similar to the process in opening a bank account, representatives of the chosen stockbrokerage company will require you to fill out a Customer Account Information Form or CAIF. Accomplish this along with the other requirements such as:
o Two (2) valid IDs;
o Specimen signature cards, and;
o Proof of billing.
3. Discuss with your stockbroker the stocks you wish to BUY or SELL.
After opening a trading account, you can now start discussing with your stockbroker the stocks you wish to buy (or sell).
4. Give ORDERS to the stockbrokers.
Placing an order to buy or sell a stock can be done by making a telephone call or sending an SMS to your stockbroker. Orders can also be placed directly online via the Internet.
5. Get the CONFIRMATION RECEIPT.
Once your order has been carried out, your stockbroker will give you a confirmation invoice showing the details of your transaction.
6. Deliver/Pay before SETTLEMENT DATE.
The delivery or payment should be before the settlement date. For traditional stockbrokers, settlement of transactions is usually done after three (3) working days from the transaction or T+3. For online stockbrokers, settlement of all transactions is done on the transaction date.
7. Receive PAYMENT.