Investing in a Single Stock
- 1). Ask the human resources representative at your company if the firm sponsors an employee stock purchase plan. If the company has a stock purchase plan available, you might be able to participate by having money withheld from your paycheck. In addition, employee stock purchase plans typically offer a discount off the market price of the stock.
- 2). Research other companies if your firm does not sponsor a stock purchase plan, or if you do not feel your employer's stock is a good buy. You can use financial publications, including the Wall Street Journal, Barron's and Investors Business Daily, along with financial websites Yahoo! Finance, Fool.com and CNN Money.
- 3). Open a brokerage account if you do not already have one. Because you will be choosing your own stock investments, you can save money on commissions by using an online discount brokers E*Trade, TD Ameritrade or Scottrade (See Resources).
- 4). Log on to your brokerage account and go to the trading menu. Enter the ticker symbol of the stock you wish to purchase, along with the number of shares you wish to buy. Review the details of the trade and make sure you have enough money in your account to cover the cost of the stock plus the commission, then click "Submit" to send the order for processing.
- 5). Keep a copy of your purchase confirmation with your tax documents. You will need this documentation to compute your capital gain or loss when you sell he stock.
