You probably know that buying shares in a company is a great way to invest money and increase your returns over the long term. But you might not know how exactly you go about doing it. Buying shares in a company can seem like an intimidating process, especially if you’re new to investing and don’t have much experience with the stock market. If you’re interested in buying shares in a company, keep reading for everything you need to know about how to buy shares on Facebook!
How To Buy Shares On Facebook?
1. Go to www.facebook.com/buystock
2. Click on the Buy button
3. A new window will open and you will see the options available to you, the most common ones being “Buy” and “Sell”. 4) Enter a valid e-mail address and password for your account.
5. Click on “Buy” or “Sell” as per your requirement.
6. You will be redirected to a payment page where you can make the payment.
7. Once you make the payment, your order will be placed, and purchase/sell order details will be displayed in a new window that opens..
8. You can track the status of your order by clicking on ‘My orders’ at right top corner of this screen
9. On successful purchase, you will get an e-mail confirmation with details of how to download your stock certificate.
What Is A Share?
A share represents partial ownership in a company. When you buy shares in a company, you own a portion of that company and receive a portion of the dividends that the company pays out to shareholders. When you own shares in a company, you also have a say in how that company is run and can vote in shareholder meetings. The price of a share is determined by supply and demand. When the supply of shares available is greater than the demand, the price will go down. And when the demand is greater than supply, the price goes up. When a company is performing well, the demand for shares will increase because investors will want to own more shares and receive profits without needing to put in more money.
Be Aware Of The Costs
Brokerage Fees
When you buy shares in a company, you’re paying a fee to your broker. The cost of this fee depends on the type of account you have, the type of broker you use, and how much money you deposit. There are different types of accounts that brokers offer and the fees vary based on those different types. For example, some brokers charge a flat rate for all trades while others charge less for trades that are executed at certain times or over certain periods of time. You can get more information about the costs by contacting your broker directly or looking online for reviews about brokers charging different amounts with different types of accounts.
Account Maintenance Fees
Some brokers charge a monthly maintenance fee to keep your account in good standing and active. These fees tend to be higher than brokerage fees because they require more work from your broker to maintain an active account. Usually, these fees are only charged if you do not maintain an active account with them each month and there is nothing preventing you from opening an inactive account with them if they don’t offer these options. Some brokers will waive these fees if you do not have any trades executed in any one-year period, but others will not waive them even if there has been no activity since your last trade was executed years ago (i.e., five years).
Dividend Payments
When a company pays out dividends to its shareholders, it uses those dividends to buy back its own stock from the market. The company doesn’t sell its stock to buy back its own shares and then use that money to pay out dividends to shareholders, it buys its own stock directly from the market. This can lead to large price fluctuations in a company’s stock price when this happens and it also makes the company more vulnerable to takeover attempts by other companies with deep pockets. Some companies choose not to pay out dividends at all, which means that you can only cash out your shares if you are willing and able to hold on for a long time.
Sales Commission
When you buy shares in a company, you’ll also have to pay a sales commission (also known as a transaction fee) on top of the fees listed above because your broker will be using your money to purchase the shares for you. For example, if you buy 500 shares from an online broker for $10 each, your broker will charge an additional $5 of sales commission for buying those shares for you. You wouldn’t have paid any sales commissions if you bought those 500 shares yourself instead of buying them through a broker because you would have paid only $5 for the transaction instead of $10 when buying directly from the company itself.
Spreads
A spread is a difference in price between buying and selling a security. For example, if you are buying shares of XYZ stock at $20 per share and the spread is $2, then you will pay $22 per share for the shares that you buy. If you are selling those shares, then the spread will be negative which means that you will receive a credit for any money that you receive from selling those shares. On average, spreads tend to be higher than commissions because the costs of buying and selling securities through a broker can be substantial (i.e., they can cost more than just paying commissions).
Transaction Fees
Brokers get paid by their clients (i.e., customers) when they make trades on their behalf. Brokers will typically charge transaction fees on top of the commissions that they charge when clients make trades on their behalf. For example, if you buy 500 shares of XYZ stock for $10 each, your broker will charge an additional $5 transaction fee to cover the costs associated with buying and selling those shares for you. These transaction fees can vary based on the type of trade that your broker is making for you (e.g., if your broker is buying or selling 100 shares of XYZ stock, then it may be less expensive to pay a $5 commission and a $0.25 transaction fee than it would be to pay a $5 commission and a $1.00 transaction fee).
Final Words
Besides being an easy, affordable way to start investing, buying shares on Facebook is a great way to diversify your portfolio. Different industries are subject to different economic factors and a lot of companies rely on the same customers or services. You don’t want to put all your eggs in one basket. You should own shares in companies from a variety of different industries so that you’re less at risk of losing money if one industry takes a hit.
