| Share
dealing is the process of buying and selling
shares on a recognised stock exchange. |
 |
| In theory,
the actual process of buying and selling
shares is quite simple. Looking on the Internet
or in the financial pages of the press, you
will find lists of shares and the prices
between which they are being bought and sold.
You decide how much you are willing to pay
for the shares and put in an offer. If the
offer is accepted, you receive the shares
and pay for them. Selling shares works the
same way: you offer your shares for sale
at a price and if someone accepts your offer,
you receive payment and hand over any share
certificates you have. |
|
| In practice,
there are a number of ways in which you can
achieve the above process. |
| |
| You
buy and sell shares: |
 |
Through a
stockbroker: you can ask the broker to advise
you or just to buy and sell shares as you
direct without their advice |
|
Through a
share-dealing service: most banks and building
societies now offer this service |
|
Through an
on-line trading service |
|
Through solicitors
and accountants |
|
Through the
stockbroking department of your bank |
|
Direct from
the company: companies advertise upcoming
share offers in the Press, on national television
and on the Internet. You apply for a prospectus
and application form, complete the form and
send it with your cheque. You need to remember
that if this is a very popular share issue,
you may not get the amount of shares for
which you applied |
|
Through a
share shop: these are shops set up in your
local high street which may be independent,
or have a connection to a bank or building
society – or even be located within
the bank or building society itself |
| |
| Note: You
can buy shares from family, friends or colleagues
direct, without going through the stock market
at all. You will still need to complete the
legal paperwork and pay stamp duty on the
transaction. |
|
| Each stock exchange will have its own way of dealing with the mechanics
of transferring payments for and from share deals and with the
paperwork. |
|
| For further help and free
advice please email
us. |
| |
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