Buying And Selling Stocks

The thought of buying and selling stocks can seem daunting for a beginner but it is quite simple and will grow on you quite quickly once you have some practice. One essential thing to know is that you must go through a broker to buy and sell stocks, only a licensed broker can deal directly with the stock market.

Engaging a Broker
Aside from making the purchases, a broker can also advise you on your purchases. However, you should not depend on them for market knowledge, you must do your own research to succeed in the market.

Click here for a list of brokers. Alternatively, you could look around for recommendations from friends.

Buying and Selling Online
Online brokers generally take less commission than other brokers, making online trading a more profitable alternative. Online trading does not come with expert advice but does normally come with live market updates so you can keep track of your purchases online and become an expert yourself.

You must open a CDS Account & a Trading Account at a stock-broking company. The main contact person at the stockbrocking company is your remisier.

To buy shares, you must have sufficient funds to cover the cost of the shares as well as the transaction costs. Your CDS account will be credited with the shares bought. All payments must be settled by 12.30 pm on T+3. To sell shares, you must already have the shares in your CDS account. Your CDS account will be debited and you will receive payments by 12.30 pm on T+3.

Orders are matched electronically through the Bursa Malaysia's trading system - there is no manual intervention in the process. Your remisier will confirm your order after it has been matched.

The day on which shares are bought/ sold is known as T-day. A contract note will be sent to you by your stockbroking company. Confirm that all details such as company name,cost of the shares and transaction costs are correctand keep this document carefully.