Buy your shares on the stock market
To do this, you need Best Trading Mentor and open an account with a financial intermediary: the broker. Once this process has been completed, the latter will then take care of transmitting your purchase and sale requests to the market.
Several types of accounts are likely to be offered by your financial intermediary to hold your shares: Equity Savings Plan (PEA), Securities Account, or Trading Account. So be sure to compare the offers carefully before making your choice.
Buy your shares directly from the company
In food, short circuits are fashionable, why not do the same for your investments by going directly to the “producer”: the company!
Best Trading Mentor and Some listed companies offer to sell their shares directly to you. This approach, known as registered investment, allows you to establish a privileged relationship with the company, with some companies even going so far as to offer preferential prices and attractive benefits to their most loyal shareholders.
Buying shares can be done through different channels. It’s up to you to choose the most appropriate option based on your objectives and your investment horizon.
Some essential notions before buying shares
Action
Every business has capital. It is mainly:
Sums of money contributed by shareholders
Profits made by the company and “stored” in capital
A share is part of the capital of a listed company. Thus, when you buy a share, you become a shareholder – and therefore owner – of a part of the company.
Point Of Buying A Stock
By buying a share , you are rendering an important service to a company: you are bringing it money. And you have two main interests in doing so:
Interest 1 – Realize a capital gain : the value of the share increases in the future and becomes higher than the price you bought it.
Interest 2 – Receive dividends : the company remunerates your risk taking with dividends.
Your Investor Profile
Regardless of your level of experience: beginner, intermediate, advanced or expert, you need Best Trading Mentor and to know your investor profile. By defining it, you will know more easily which investment strategy to deploy to buy your first shares. It is your profile that determines the type of shares you will buy, on what medium, how often, etc
Identify direct costs and tax-related costs
There are two main types of costs associated with the purchase of shares:
Direct costs
Tax-related costs
Direct costs of actions
Buying shares incurs fees. First, brokerage fees . This is the remuneration of the financial intermediaries (banks, brokers, etc.) following the purchase order that you have ordered. These fees can be fixed (package) or variable (percentage) and depend on the intermediary’s pricing policy.
Tax-related costs
Income earned by buying shares is taxable at the PFU : the single flat tax (also called “flat tax”). This income may be capital gains or dividends. The PFU amounts to 30% of the taxable amount (12.8% income tax and 17.2% social security contributions). But, it is also possible to optionally choose taxation at the income tax (IR) scale. You will therefore have to arbitrate between PFU or IR depending on your case, to optimize the amount of your tax.
Choose your support
There are several media on which you can deposit your shares. It is interesting to know their operation, advantages and disadvantages in order to choose the most appropriate medium for your investment strategy.
The PEA
The PEA (plan d’épargne en action) is a regulated savings product that allows you to buy and manage a portfolio of shares in European companies.
The CTO
The CTO (ordinary securities account) is a medium that allows you to invest in financial markets (European or foreign, listed or unlisted). It is also called securities account or financial instruments account (CIF).
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