How do i buy shares?

topbargaingirl

Sorry to seem so dim, but can anybody tell me how I go about buying shares in a shop, for example: Boots?

Lokolo

You buy shares through a broker usually.

Brokers are a bit like shops all selling the same products (shares) at different prices and services,

Buying shares costs money. Usually around £10-15. This cost is to trade. So it will cost you £10-15 to buy, then £10-15 again to sell.

http://www.iii.co.uk/sharedealing/

This is an example of a popular broker.

You then find the code for a company

e.g. Sainsburys is SBRY.L

http://uk.finance.yahoo.com/q?s=sbry.l

You can then buy shares using that.

However, Boots are no a PLC, so shares cannot be traded publically.

lr1277

What has been described above is internet broker. They will keep the certificate for you and their costs are less than what I am about to describe.

1) You can go into most bank's branches and you can buy the shares. This costs more than dealing through the internet and you get the share certificate. Advantages: if the company provides shareholder perks, you will get them, unlike when the shares are held by some internet brokers. Downside: it costs more.

Details here:
http://www.natweststockbrokers.com/nw/products-and-services/share-dealing/g1/trading/one-off-branch-serv.ashx

2) If you are happy to put away so much a month, you can try halifax sharebuilder. You put in an order and then on set days of the month, they fulfill your order. Say you put in £10/month and the share you want is £3 then they will buy you 3.33333 shares. You don't have to choose one share. Say you put in enough, you can buy more than one share a month. Pros: very cheap dealing costs. A good way to start buying shares. Cons: Not really used it so can't comment.
More details here:
http://www.halifax.co.uk/sharedealing/products/halifax_sharebuilder.asp

I am not recommending either way, but these may suit your needs.

preable

http://www.halifax.co.uk/sharedealin...arebuilder.asp

Nosht

Go for an internet online broker, many to choose from.
I have 2 & a traditional Stockbroker & far prefer to deal my own as this keeps the transaction costs down.
Foolish to buy shares for the shareholder benefits unless you really need to attend the AGM, but purchase for a good reason.
Have a trading philosophy & stick to it.
Mine is very simple - if the share price increases by 10% then I sell, not top slice or part, sell all & never look back.

Regards,

N.

P.S. Also good to have some practice trading online before going live.