- 1). 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.
- 2). 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.
- 3). 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.
- 4). 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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