Sunday, June 3, 2012

Buying Stocks Without Going Through A Stock Broker

As I've mentioned on this post, when buying stocks one must go through a stock broker, either online or with the traditional broker. But, there is an exception to that and learning how to buy stocks without a broker is something to be done by experience investors.

A lot of the big boys of stock investing like Warren Buffet won't likely to through the broker in order to buy or sell stocks.

When buying stocks without a broker, an investor will go directly to the company whom he wants to buy share of stocks. This is direct communication between the investor and the company department responsible for handling such transaction. There are no commission fees involve in this type of transaction, unlike if it goes through a broker.

However, if you should opt on this path, you should have a good knowledge of investing, not just the fundamentals but advanced knowledge of how investing works, including the laws which are associated with it. Although, you don't need lawyers to assist you on this, but, it is a smart idea to have one, just in case some things not good may arise.

You need to read every fine print about the policy of the company you're investing in, and understand clearly what you're doing and possible outcomes in case the company goes bankrupt.

This is something that a beginning stock investor should not do. If you are planning of doing this, master first the basics and simple way of investing stocks through online brokers and progress your investing journey towards a more sophisticated and more profitable way of investing.

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