User:Carolnovais

Stock investment

To buy and sell stock, you usually need to have an account at a brokerage firm. In a brokerage account, you are able to give orders to a stockbroker at the firm who will execute those instructions online (Finra.org, Buying and Selling Stocks). Full-service brokerage firms provide customized portfolio management, investment advice, financial planning, and other services (Finra.org, Buying and Selling Stocks). However, there are ways to buy stock directly through certain companies without using a broker. For example, if you bought a share of stock through a broker and the firm has a dividend reinvestment plan, or DRIP, you can choose to buy more shares through that plan (Finra.org, Buying and Selling Stocks).

One important factor in picking stocks is to focus on either growth or value stock. Investors who focus on growth investment, they are focusing on the potential growth of a company and ignoring the price which may be higher than the current profits (Finra.org, Types of Stocks). This investment strategy may be promising because it may result in high returns in a short period of time if the company goes well. But with growth stock, comes with a very high risk because it is not guaranteed growth. On the other hand, value stocks are more of a solid investment because you are confident that the stock is worth more than its current price based on its history (Finra.org, Types of Stocks).