When you open a new account with Charles Schwab, you buy shares, not “stock” in the abstract — but in conversation, people often say “buy stock.”
Here’s the breakdown:
1.
Understanding the Terms in Practice
- When
you say buy stock,
you mean buying shares
of a company’s stock.
- For
example:
- “I
bought stock in Apple.” (general statement)
- “I
bought 10 shares
of Apple at $180 per share.” (specific transaction)
2.
What You Actually Do on Schwab
- When
you log into your Schwab account and place an order:
- You
search for a company (e.g., AAPL for Apple).
- You
enter how many shares
you want to buy (e.g., 5 shares, 10 shares).
- You
confirm the trade at the market price or your chosen limit price.
3.
Beginner Advice
If you’re just starting out:
- Start
with small amounts
while you learn.
- Consider
buying shares of
ETFs (like SCHD
or VTI)
instead of individual company shares.
- ETFs
let you own pieces of many companies at once, reducing risk.
- Learn
about:
- Order types
(market order vs. limit order)
- Commissions and fees
(Schwab often has $0 commissions)
- Portfolio diversification
Quick
Example
If you deposit $500 into your Schwab account:
- You
could buy 2 shares
of Apple (AAPL) at around $250 each.
- Or
buy a few shares of
an ETF like SCHD,
which may cost less per share.
Would you like me to make a step-by-step guide for your first trade on Schwab?