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How to buy stocks without a broker?

Managing your own brokerage account, thereby bypassing the need for a stock broker, has become an increasingly popular option for many traders around the world.

Dealing with stocks these days doesn’t require you to have your own broker since you trade on your own with the help of the Internet. All that you need to do is to set up your own account online and get to start trading soon. This is the answer that investment firms gave their customers who wish to either sell or buy stocks on their own. So what are the steps needed to buy stocks without a broker? Listed below are the basic steps that you can follow to be able to deal with trading stocks online.

First, you can invest in the company through its direct stock purchase plan. Many popular companies like Walt Disney offer such a plan to interested individuals who want a share of the magic without spiraling into bankruptcy. You will find that investments in direct stock purchase plans can make thousands of profits on just a few hundred of dollars in capital investment, if and when you know how to choose good stock picks.

The terms and conditions of the plan will vary but most are affordable. For example, the company will require a certain amount of deposit for one share. Your subsequent acquisition of other shares will be through automatic debiting of your account on a monthly basis. You are basically saving money albeit in the form of stocks in a profitable company, not currency in the bank.

Online Trading Companies

Using an online brokerage firm may, technically speaking, still count as a “broker”, but only because unless you buy shares directly from the corporation itself, you simply cannot buy them independently. Online firms such as these provide a buying and selling platform that is non-invasive and usually offer a flat commission per trade.

Research the stocks you want to invest in. Most of these online trading sites also provide research material so you can educate yourself on the stocks and bonds you may be interested in buying. You should do a lot of research on any stock before you decide to invest your money in the stock. These sites also help you to understand finance and trading terminology that you may be familiar with. It is important that you make informed and educated decisions to help reduce the risk of loss of your money.

Invest through the company’s direct stock purchase plan

A number of companies, offer direct stock purchase plans. These plans allow investors to buy shares of stock directly from the company. Most have a minimum initial deposit but are happy to waive it if you agree to automatic monthly withdrawals from your checking or savings account. This way, the company automatically purchases stock for you by debiting your bank account every month. This can be an easy and relatively painless way to save.

Take advantage of the DRIP program’s cash investment option

Many companies also offer something called Dividend Reinvestment Plan or DRIP, in which all dividends are reinvested in additional shares rather than being deposited into your bank account. If you want to buy stocks without a stock broker, enrolling on a DRIP program may be the easiest and quickest, as it can often be done online in a couple of minutes, even by inexperienced investors. Some companies require you to own a share in the company before you can enroll in their DRIP plan. This can be done easily if the company you are interested in is a big one, as most corporations have shares available for sale to the public.

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30. Jan, 2012
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About Indian Stock Market

In 18th century, East India company established Stock exchange in India. In 1860, exchanges had 60 brokers and it was going very well, in 1874 with the rapidly developing share trading business, brokers used to gather at a street (now well-known as “Dalal Street”) for transacting businesses. In 1946 India had only seven exchanges and in 1995 constricted to 22 exchanges.

Stock Exchanges are organized marketplaces, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities. Indian stock market have 23 exchanges, in which two stock exchanges are most powerful, they are BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

BSE, Bombay stock exchange established in 1875, and have listed 4700 companies. BSE is the oldest exchange in all over Asia, other name of BSE is BSE-30. BSE index is managed by Top 30 companies and most of Indian investors and foreign investors are investing their money in BSE. All the activities are performing by BSE under the SEBI rules and regulation. The values of all BSE Indices are updated on real time basis during market hours and displayed through the BOLT system, BSE website and news wire agencies and all BSE Indices are reviewed by the BSE Index Committee. The timimg of trading in BSE is from 9 am to 3:30 pm and we can trade only Monday to Friday.

NSE, National Stock Exchange established in 1992 and it have 1587 numbers of listing. NSE consists as main indexes like S&P CNX NIFTY, CNX NIFTY JUNIOR, S&P CNX 500. It is the largest exchange in India in terms of daily trades and turnover and expected biggest exchanges in India in terms of market capitalization. NSE is set of leading financial institution, insurances companies, banks and other financial organizations but, all rules and regulation followed are handled by NSE committee. NSE is the third largest Stock Exchange in the world in terms of the number of equities and trades, It’s the second fastest growing stock in the world with a recorded growth of 16.6%. NSE consist five major market these are Future & Option market, Equity, Retail & Debt, Wholesale Debt, Currency Future market. The timimg of trading in NSE is from 9 am to 3:30 pm and we can trade only monday to friday

Apart from that some other exchanges are also existing in Indian stock market has known as regional exchanges named as Madras, Delhi, Jaipur etc. In India there are some other exchanges also, which are totally different with these stock exchanges known as MCX exchange, NCDEX exchange.

If anyone wants to invest or trade in Indian stock market, then he must have a demat account in relative bank, after having a demat account anyone can trade in stock market. You can trade or invest in stock market under the rules & regulation declared by SEBI. You can trade with any of the broking firms which are listed in exchanges and get free stock tips from different advisory firms running in the market.

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02. Jun, 2011