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Why do you need to go through a broker or company to buy stocks?

Is that so…? asked:

Is it possible to buy small ammounts of stocks without paying someone else trading fees?

This entry was posted on Sunday, August 31st, 2008 at 8:03 am and is filed under Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Why do you need to go through a broker or company to buy stocks?”

  1. u can buy,,pls tell m whch markt ur asking?? indian or sm othr??

  2. financing_loans on September 5th, 2008 at 7:00 pm

    GRRR>>>

    Okay I will try and explain. Im going to use a commodity because its something that seems more real. We will use oil. Lets say you buy 100 dollars in oil. You dont have the oil. You didnt buy anything but paper. In 6 months you have to deliver the oil. You dont have any oil so you have to sell it. You are a speculator. You buy and sell stocks for the margins.

    The stock market moves like the commodity market. You buy an interest in a product whether you keep it or not. The reason you have to go through a broker is for your protection. They have to guarantee your money and it goes to a stock board. Say the DOW. The DOW has to guarantee your ownership. They have to guarantee your trade.

    So back to oil lets say you bought 100 dollars in oil. If you didnt deliver whoever you bought it from would have to deliver it.

    You pay brokers to make sure you are protected. I could go on for 40 pages, but they are licensed people. People licensed by the governement to make sure if you buy anything or sell anything its protected. It only protects if you bought or sold, doesnt protect price or where it goes up or down.

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