Stock Market Savvy |
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Wish You Owned McD’s?Have you ever wished you owned a big company like McDonald’s, Nike, MCI, or Shell? You can become a part-owner of any of these companies by buying one share of stock. "Owner" Sounds Great!When you buy stock in a company, you become a stockholder with one vote for each share of stock you own. You will start receiving mailings from the company with reports on how the company is doing and announcements of stockholders meetings. If you cannot attend the stockholders meetings, you can sign a "proxy" statement that gives another person the right to cast your votes. You can remain an owner of the company for as long as you choose or for as long as the company stays in business. Do I Need a Broker?The average person buys stock by calling a stockbroker, a person who is licensed to sell stock. The broker finds out what price the stock is selling for that day and arranges the purchase. You pay the broker a fee or commission for arranging the transaction. Avoid High Brokerage FeesToday, some young entrepreneurs avoid paying high commissions to full-service stockbrokers by using online Internet services to buy and sell stock. An online stock market service usually charges a monthly fee and/or a low transaction fee, depending on the type of account you set up. The online services are also good sources for the latest stock prices, as well as stock market news. Revised: December 13, 2001. |
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