The 101 process to buying your first share online

The process to purchase your first stock online #realtalk…..

Complete the forms:  

Firstly you will need to complete the forms provided regarding accounts clearing and ownership. It does help to have a separate account for your portfolio, as this helps streamline the process at tax time.  Full service brokers might wish to set up an account with them.

The Purchase phase:

The key things to know. Otherwise fill out the details from the top of the screen to the bottom.

  • Order Type – choose buy or sell
  • Code – ticker symbol of the company (e.g. the Woolworths Ltd code is “WOW” Oh yeah it is!!!!!)
  • Quantity – the number or dollar value of shares
  • Price Limit (Limit order) – the maximum price you are willing to pay per share. Your order will be placed into the queue at that specific price.
  • At Market (Market Order) – your shares will be purchased immediately at the best available price (i.e. the lowest seller). The price is not guaranteed and liquid stocks may have a buy price much higher than the last traded price.
  • Expiry – your order will remain in the market until the date you specify when any unfilled shares in your order will be purged (removed) from the market. Some brokers use “Good till cancelled” or “Good for Day” the order will remain in the market for that current trading day only. Orders placed after-market hours will expire at the end of the following trading day.

Holding the shares:

Shares are held on and electronic registry. All listed companies have a share registry (an external company) that’s in charge of maintaining their constantly changing list of all shareholders.   All shares that are held via your stockbroker have a HIN or Holding Identification Number. This HIN  is a 10 digit number starting with “X”, this number represents all your share holdings at a specific brokerage and is documented in a CHESS register (Clearing House Electronic Sub register System) used by the ASX to record shareholdings and manage the settlement of share transactions. If you have multiple brokers,you will have different HIN with each broker.

Keeping up with me?

Perfect

Or you could hold the Shares directly with the Share Registry where you are given an SRN or Security Reference Number. A 10 or 11 digit SRN that starts with an “I”. This represents your shareholdings in that specific company.   If you own shares in multiple listed companies, each share holding will be represented by a different SRN. To confirm your shareholdings you must log into the applicable share registries website (e.g. Computershare, Link Market Services, etc.) using your personal details and SRN.   To sell your shares you must quote the SRN to your stockbroker so they can double check your holdings with the registry.   Now that you have filled out the requirements, your order will go into a queue on what’s called the Market depth screen. This shows all orders for a particular stock and they are all in the order that they were placed in. So all orders that are at the same price as your one are first come first served here sorry no pushing in!   Once the deal has been done you will receive a Contract Note that states who, what, when & for how much.  This is your own piece of the pie right here mmmm mmmm. It tastes so good! But now you have to pay for it. Usually it takes 2 days to clear out of the nominated account and the deal is done! Nice work! You will receive a Holding Statement via post at the end of the month. Old School right!   When you want to sell, you just do the same thing but sell instead of buy it is that easy.

So go ahead jump in the shark tank try it out you might be surprised and make a bit of coin after all that money was just sitting there gathering dust, and you can’t pay for anything with dust.

I’m off to find the next golden cow!
The OYSTA Team

The Content Team

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