How do you buy a share
How do I buy stocks? Basics with example
The interest on savings accounts or on government bonds is lower than ever before.
One more reason - also for private individuals - to make investing in shares an important pillar of investment.
In Germany, however, the share of private investors is still very low. Buying shares is not rocket science.
How do I buy stocks? The technical requirements
Long gone are the days when stocks were only an asset to a select few. Buying and selling stocks is possible for everyone these days.
What you need is a securities account, also known as a stock account. Since shares have not been delivered in paper form for a long time, the corresponding values are posted in such a share portfolio.
Anyone can open a share custody account at their house bank. If you want to buy and sell shares independently, you can do this, often much more cheaply than at your house bank, with a share deposit with an online broker.
A comparison of the providers of securities accounts is definitely worthwhile.
How do I buy stocks - and then the right stocks?
Anyone who buys stocks should always be sure which one they are buying. It may sound strange, but in practice it is not so rare that beginners in particular do not buy the stocks they actually wanted to buy.
One reason for this is that some companies issue different shares, such as registered or bearer shares.
Here, the differences in the price development are usually not that great, but it is still important to know which stocks you want to buy.
In large companies it also happens that shares are issued for different company divisions.
If you take a look at the company Nissan, which many will be familiar with for its cars, you will see that there are over 10 different stocks available for different areas on the market.
The WKN helps to buy the right stocks
In order to rule out confusion and to ensure that every investor can also buy the shares they want, there is the WKN and the ISIN.
WKN is the abbreviation for securities identification number. This is a 6-digit number made up of numbers and letters that makes each security clearly identifiable. It is, so to speak, the fingerprint of a security.
The WKN is a German code that is also assigned to all foreign securities traded on German stock exchanges.
On international stock exchanges, stocks and other securities can be differentiated using the ISIN (International Security Identification Number).
How do I buy stocks? A fast-forward example
First, I open a share portfolio with an online broker or with my house bank.
After I have all the access data, I can now make the first purchase of shares at the house bank in the branch, by phone or, as with online brokers, also via the Internet. Such a share purchase is called an order.
An example: I want to buy 50 pieces of the Nissan engine. So that I don't buy the wrong shares, for example Nissan Chemical, I selected the appropriate WKN beforehand, in this case WKN 853686.
So I can now enter the exactly correct share that I want to buy in the input mask. Now just select the number of pieces I want, and it's almost done.
All I have to do now is enter the order type and choose a trading venue. In most cases, the order type when buying is "cheapest" and the trading venue chosen is Frankfurt or Xetra because of the highest turnover.
Now simply confirm the purchase and the shares will be booked in my share portfolio the next time they are executed (this usually takes less than a second). From now on I am the proud owner of 50 shares in Nissan Motor.
How do I buy stocks that make a profit?
It is not easy to give an answer as to which stocks will achieve price increases and thus profits in the long term.
Here it is important to be well informed, because the most important cornerstone for choosing long-term profitable stocks is your own knowledge.
However, since nobody can have an overview of all values, it is advisable to look for reliable sources of information. Because the oldest and probably also the most important stock market wisdom is: "First inform, then invest."
You can then make your decision based on all available information. The information from our experts on GeVestor is a good help here.
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