How to 'do stocks'

[Josquius]

I've always been kind of interested in this stocks and shares business what with it being so integral to the way the modern world works. And being the way the really rich make more money.
I've never really had enough money to even consider trying to play the game though.

I still don't have enough money.

Yet nonetheless....I am curious.
How exactly do you go about buying and selling stocks and all that sort of thing?
Are there transaction fees? How big do dividends tend to be for typical low level stock holders (yeah, varies by how well the company does....but given a certain example?)?

Yes, I've tried googling, but a decent newbies guide seems rather hard to find, everything seems to just concentrate on "Do it! Buy low, sell high! You didn't know that did you?"

[Admiral Yi]

Open an online account.  Put money in.  Buy stock.

Transaction fees in the US run about $7-$10 a trade.

2.5% might be the market average dividend in the US right now.  Anything 4% and up is probably considered a "dividend stock."  A monster might pay 6 or 7.

[Richard Hakluyt]

I read this book http://www.amazon.co.uk/Financial-Times-Guide-Investing-Definitive/dp/027372374X/ref=sr_1_1?ie=UTF8&qid=1321429174&sr=8-1 before I started, very useful. In the UK there is a 0.5% stamp duty to pay when you buy shares, this mounts up if you chop and change too much.

For just browsing stocks I use google finance. If I see something that interests me I then go to the company website and read their annual report (that part of it I understand  ).

I think it is well worth finding out how it all works. A lot of British savers are languishing on 0.5% interest, they could get >5% on safe utilities if only they knew the basics.

[Brazen]

If you're not sure what your doing, buy bonds. You can get over 4% risk-free over two years.

[The Minsky Moment]

. You can get over 4% risk-free over two years.

Hmm...

[Rasputin]

. You can get over 4% risk-free over two years.

Hmm...

my thoughts exactly

risk free assuming no return of inflation and assuming that our corporate citizens pay their bills; check with chyrsler's bond holders to see how risk free worked for them

[Martinus]

If you're not sure what your doing, buy bonds. You can get over 4% risk-free over two years.

I bet the people who bought Greek bonds 2 years ago thought the same. 

[The Minsky Moment]

I did a quick check to see if I could find any 2 year sterling denominated bonds offering around 4 percent.

the closest I could find was a sterling denominated bond issued by . . .the Republic of Italy.

[Ideologue]

They're good for it once Pompey returns from Asia Minor.

[Brazen]

I was talking about fixed rate savings bonds, like these:
http://www.moneysupermarket.com/savings/fixed-rate-bonds/?source=GOO-000202CD&Keywords=bonds&Exact&p=0&ef_id=o9dOu5Wa-hsAAIbs:20111116150904:s

The top guaranteed rate is 4.01% over two years with British (though Santander-owned) internet bank Cahoot. Even with just £500 to invest you can get 3.9%.

My Dad put his pension lump sum in a variety of these types of bonds the withdraws the interest when they mature. Obviously the return has gone down significantly in the last few years, but then he's hoping to spend the lot rather than leave it to me

[The Minsky Moment]

I was talking about fixed rate savings bonds, like these:

Agreed that is safer but at the cost of losing all liquidity for the two year period.

[Rasputin]

I did a quick check to see if I could find any 2 year sterling denominated bonds offering around 4 percent.

the closest I could find was a sterling denominated bond issued by . . .the Republic of Italy.

italy is too big to fail :wink:

[DGuller]

And too Italian to succeed.

[Admiral Yi]

I was talking about fixed rate savings bonds

Are those guaranteed by the British government, as their US equivalents are?

[Admiral Yi]

Or as is more likely, are they guaranteed by the Spanish government?