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A Beginner's Guide to Buying Stocks

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Learn the basics of buying stocks and how to get started.

description: a person sitting at a computer, looking at stock charts and research. the screen displays a brokerage account and various financial websites.

To buy stocks, you'll first need a brokerage account, which you can set up in about 15 minutes. Then, once you've added money to the account, you're ready to start buying stocks. But before you dive in, it's important to understand some key concepts.

First, you'll need to decide what type of stocks you want to buy. There are different categories of stocks, such as growth stocks and value stocks. Growth stocks are companies that are expected to grow at a faster rate than the overall market, while value stocks are companies that are considered undervalued by the market.

Once you've decided on the type of stock you want to buy, you'll need to do some research on the company. Look at their financials, earnings reports, and any news about the company. This will give you a better understanding of the company's financial health and future prospects.

Buying and selling stocks of a company is done electronically through authorized brokers, or stock brokerage companies, who are registered with the Securities and Exchange Commission (SEC). There are many different brokerage firms to choose from, so it's important to do your research and choose a reputable firm that meets your needs.

When you're ready to buy a stock, you'll need to place an order with your broker. There are two types of orders: market orders and limit orders. A market order is an order to buy or sell a stock at the current market price, while a limit order is an order to buy or sell a stock at a specific price.

It's important to keep in mind that buying stocks comes with a certain level of risk. The stock market can be volatile and unpredictable, and there are no guarantees that you'll make a profit. However, with proper research and a long-term investment strategy, buying stocks can be a great way to grow your wealth over time.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Apollo Medical Holdings, Inc. AMEH, Amedisys, Inc. AMED, American Equity Investment Life Holding Company AEL, American Public Education, Inc. APEI, and American Superconductor Corporation AMSC. These stocks have all been rated as strong buys by analysts and could be worth considering for your portfolio.

Another popular stock to consider is Amazon (NASDAQ:AMZN). Founded by billionaire Jeff Bezos, Amazon has grown into one of the world's biggest brands. To buy shares in Amazon, you'll need to open a brokerage account and place an order through your broker.

Instead of doling out monthly premiums, investing in the market with the expectation of earning more than a 2.5% yearly return can be a great way to grow your wealth over time. Just remember to do your research and invest with a long-term strategy in mind.

In conclusion, buying stocks can be a great way to grow your wealth over time, but it's important to do your research and invest with a long-term strategy in mind. Choose a reputable broker, research the companies you're interested in, and keep in mind that the stock market can be volatile. With these tips in mind, you'll be on your way to building a successful investment portfolio.

stocksbrokerage accountgrowth stocksvalue stocksresearchfinancialsearnings reportsauthorized brokersmarket orderslimit ordersrisklong-term investment strategyzacks rankamazonNASDAQ:AMZN

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