How to Measure Volatility of a Stock

Create a spreadsheet to compile and calculate stock price information. Make a separate page in the spreadsheet for each stock you are going to track to keep things simple and organized until you get accustomed to keeping and reading this type of data. For each stock make a column for historical stock prices and another for daily stock prices.
Make a list of the stocks you have holdings in currently and those that you are considering investing in. Write down stock names, trading symbols and stock prices with dates. Access historical stock price data and copy the information directly in to the spreadsheet you created.
Enter all historical information in to the spreadsheet. At a minimum you will need one month worth of daily stock prices to get started but for better results six months of historical stock price data is good.
Calculate what is known as the average closing price. This is done by finding the average of the stock price based on a period of time. Taking the six-month window of historical data as an example, you would find the average price of a stock over six months by adding all of the daily prices from the six-month range and dividing that number by 183. A different example would be for a 20-day period; add all 20 daily numbers and divide by 20 for the simple average.
Take the average closing price and calculate the difference between that average and the actual closing price. If you are using a spreadsheet you would create a third column for this information. This number is what is known as the deviation.
Square the deviation number and then add together all of the deviations for the time period that you are tracking. Then you take that sum of the squared deviations and divide that number by the time period you are tracking. For example, in the 6-month example you would divide the sum of all squared deviations by 183.
Take the square root of the last number calculated and you are left with the standard deviation. A higher standard deviation number means higher stock price volatility which then implies more pricing swings and movement, which is attractive to higher risk investors.

How to Deposit Stock Certificates Into a Brokerage Account

Endorse and date the stock certificate. Turn your stock certificate over and sign it exactly as the name appears on the front. The account you are depositing into must have the same name. If it is written to a single person and the account is a joint account there may be additional steps. Place the date near your signature.
Write the name of the broker on the back where it states 'constitute and appoint
__ Attorney.' This is where you put the name of the bank you are depositing it into, such as USAA or Ameritrade. This ensures that if it gets lost someone else will not be able to deposit it.
Write your brokerage account number under your signature. This will make sure it is deposited into the right account. This number should be located on your most recent statement.
Make a copy of both sides of the certificate and mail the original certificate to the address of the brokerage company. Choosing a certified mail option, will give you peace of mind that your package arrived safely. Watch your account statements to make sure the certificate has been deposited, and that the number of shares is correct.

How to Start a Stock Brokerage

Obtain sponsorship to take your Series 7 exam. You will need sponsorship from a Financial Industry Regulatory Authority (FINRA) member firm or from a self-regulatory organization (SRO). This often comes as a result of employment as a stockbroker with a licensed brokerage.
Pass the Series 7 exam, also known as the General Securities Registered Representative Examination. This test is administered by the NASD (National Association of Securities Dealers). You also need to obtain your Series 63 license if you have not already done so, as well as the Series 24, which permits you to run your own office.
Write a business plan outlining how you will run your stock brokerage. You need to make sure your potential investors believe you have a sound vision for your stock brokerage firm. Include information such as expected expenses, your marketing plan, employee growth goals, and targeted markets.
Present your business plan to potential investors. If you worked in another stock brokerage, you might be able to meet with some of the investors from that company. Tap into your social and business network for other investors. Meet with banks to obtain a loan if you can't get enough investors on board.
Obtain a business license, as well as any required permits for doing business in your area, by filling out all the necessary paperwork through the Secretary of State's office. You also must register your firm with the National Association Of Securities Dealers (NASD).
Hire a securities lawyer and consult with him to make sure you've obtained all necessary paperwork and that everything is up to date. Having the legally required licenses and permits and to start a stock brokerage firm is of utmost importance and can get complicated depending the state you're in.
Hire a fully licensed compliance officer. Ensure that your head compliance officer has passed the Series 14 exam.
Hire employees to work in your stock brokerage. You'll want to interview many candidates and make sure they have experience and education to work for you in the capacity you require. You will mostly need stockbrokers and may later need to branch out and hire secretaries and human resource workers. Stockbrokers must be properly licensed. Ask to see documentation of this licensing before hiring anyone.