Showing posts with label application. Show all posts
Showing posts with label application. Show all posts
Saturday, August 22, 2015
How to Open a Stock Market Account
Select an online stock broker. It is important to compare stock commissions, other fees and the services the broker provides through their website. Changing brokers can cost $100 or more, so this is an important step. The Smart Money broker 2009 Broker survey is linked below. The top three rated brokers in the survey were E-Trade, Fidelity and Charles Schwab.
Apply online for an account with the selected stock broker. The online application process will take about 10 minutes and you will receive instant approval and an account number. Stock brokers are required to collect employment information to comply with Securities and Exchange Commission rules.
Fund your brokerage account. Money can be sent to a stock broker account by wire transfer, electronic ACH transfer or by sending a check. Wire transfer is the fastest but has fees on both ends. It takes three to four days to set up an ACH transfer. Once set up, ACH is an easy way to move money in and out of your stock account.
Familiarize yourself with the broker's stock order screen and place trades for the stocks you want to own. Stock purchases are done by designating the number of shares. A market order will be filled at the current price. If you want to buy or sell at a specific price, use a limit order.
How to Issue New Shares of Common Stock
Decide on the funds that are needed. This will help you decide on how many shares of stock to issue. The price of the stock will be based on the price of your company's stock that is already on the market or on an investment banker's view of how much the stock is worth after doing a thorough check of the finances and operations. The investment bankers are referred to as underwriters. If you have not issued any stock yet, the price is based on the amount set when your corporate application was filed with the Secretary of State's office.
Obtain approval from the board of directors to issue new stock to the public if you are already in operation. If just starting out a business, approval is not needed, and in most cases a board of directors will not be set up yet.
File a registration statement. This is obtained from the SEC. On the statement, besides the basic company information, you will need to state how many shares of common stock you want to issue. You must file at least 20 days before you are going to release the stock.
Notify investors if you are searching for a quick sale to one entity or want an investment bank to buy the stock and reissue to the public for you.
Offer shares to shareholders. This is another option with the issuing of the new stock. You may offer shares based on the percentage of shares that each person or entity already owns.
Allow the issue of stock to go public once the application is processed. If you prefer to have a public sale instead of allowing the stock to go to shareholders, investors, or banks, then allow the stock to be sold on the open market after the SEC approves the application.
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Thursday, August 20, 2015
How to Buy Direct Stock Without a Broker (4 Steps)
Find out if a company you are interested in offers a direct stock purchase plan. Companies offering DSPPs feature them in the Investor Relations section of their websites. Alternatively, you can check transfer agent companies like ComputerShare and Sharebuilder, who have lists of the companies for which they manage DSPPs on their websites.
Open an account with the company's transfer agent. You can either call the transfer agent and request a paper application or apply online. There is a one time fee to set up a DSPP to buy direct stock without a broker that ranges from $10 to $25, depending on the stock. The minimum investment is usually $250 or $500.
Arrange to have monthly investments automatically deducted from your checking or savings account. You can make your investments by check. However, if you use electronic funds transfer the transaction fees are lower--just $1 to $3 per transaction, pus 3 to 5 cents per share. Another advantage of using electronic debiting is that you can meet the minimum investment requirement with monthly installments of $50. Once you have invested the minimum you can add more when you wish, as long as additional investments are at least $50 each. Some companies, like Exxon Mobil, even pay the transaction fees for stock purchases so all of your money goes directly towards purchasing stock.
Choose the plan features that suit your needs. Most DSPPs provide free dividend reinvestment and safekeeping storage of your stock certificates. You can set up a direct stock purchase plan as an Individual Retirement Account (IRA). Some companies add special features. For example, McDonald's has a program in which a minor can start a direct stock purchase plan for their stock for as little as $100.
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