How Do I Start Investing? How Do I Buy a Stock? | Ask A Fool

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In this edition of “Ask a Fool,” analyst Austin Smith answers the question “Where do I start? How do I choose and purchase a stock?” He defers to the proven Peter Lynch model of buying what you know, which means investing in companies that you personally understand and that have relatively transparent business models. For beginning investors, some popular stocks with easy-to-comprehend business drivers include McDonald’s (NYSE: MCD), Starbucks (Nasdaq: SBUX), and Coca-Cola (NYSE: KO).

Once you’ve identified a stock you’re committed to, the next step is to open a brokerage account. Austin provides some popular companies as examples. You’ll need your stock’s ticker symbol, which can be found easily with a Google search, or by typing the company name into the search box at http://www.fool.com. Decide on the number of shares you’d like to buy, and then simply call your broker or use their online interface to place a trade.

To compare online brokerages side-by-side and to learn more about what’s involved with opening an account, visit Fool.com’s “How to Invest” hub: http://bit.ly/17nlnx6

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