by Arrnica Dayannandan

Created on: February 02, 2009

As witnesses to the dizzying heights as well as the bottomless pits that the stock markets have seen in the last several months, many a people have got attracted to the stock markets to make money both, during the bull trends, as well as the bear trends. If you are one of those who have arrived at the decision entering the stock markets and buying or selling shares of stock, then here is what you may need to do:

- Zeroing in on the appropriate Shares of Stock:

As for one, you will definitely have to make yourself aware of the current market trends, as well as keep yourself updated with the latest market news and research. This might help you gain a fairly predictable idea of which shares of stock, you can trade in, to make money.

- Contacting a Licensed Broker:

Next you may want to contact a licensed broker, who will have you registered as his/ her client, so that you may now enter the share market, and begin trading. For this you may want to look up your local classifieds for local stock brokers registered with your local exchanges, depending on the shares of stock and the exchanges, in which you may want to trade.

- Brokerage:

Your broker will furnish you with a catalogue of brokerage plans, from which you may select based on your expected volume of trade, and the time period for which you wish to trade, through the given broker in concern. This will help you arrive at the appropriate brokerage plan to subscribe to. It is the standard charge that you have to pay for every pair of buy and sell action. The brokerage can range from 0.75% to 1.5%.

- Transaction Tax:

In addition, your local government makes its bit of money through the transaction tax. This is for your local government's efforts in ensuring a well regulated, non-defaulting, and risk managed exchange and trading place. The transaction tax can vary from 0.5% to 1%. It is imposed upon the gross sale price incurred by the seller, based on the applicable market value of the stock sold in question.

- Transfer Fee:

Finally, a transfer fee is levied. This is either collected by a corporation or a stock transfer agent. This is the fee incurred for facilitating the stock transfer process. If the basic transfer requirements are not met, then a stock transfer request can get rejected and the transfer fee that you may have furnished can get refunded.

Thus we have successfully established and explained the connection between transfer fees and shares of stock.

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