How do you actually buy stocks? Through a brokerage? So if I am linked up with a brokerage, I just hold my position for long? Does it mean im a share holder? How are then dividends paid to you? - Seedly
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Anonymous

Asked on 08 Mar 2019

How do you actually buy stocks? Through a brokerage? So if I am linked up with a brokerage, I just hold my position for long? Does it mean im a share holder? How are then dividends paid to you?

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (Mar)

Level 8. Wizard
Answered on 09 Feb 2020

Just open a brokerage account and hold longterm, the dividends land in your account automatically.

my thinking: https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

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Billy Ko
Billy Ko
Level 7. Grand Master
Answered on 19 Jan 2020

How do you actually buy stocks?

You buy stocks by entering a price you'd like to purchase the stock at, alongside the number of units you'd like to buy on the broker application

Through a brokerage?

That is correct

So if I am linked up with a brokerage, I just hold my position for long?

You hold your position until it reaches your Take Profit price or Stop Loss price and then you sell it.

Does it mean im a share holder?

If your broker account is CDP-linked then yes, you are a shareholder. If your broker account is Custodian account then no, your broker is the shareholder.

How are then dividends paid to you?

Dividends are paid to the bank account you link to your broker account

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pat
pat
Level 7. Grand Master
Answered on 19 Jan 2020

Broikerage firm

Yes

Yes

Yes

Bank transfer that you linked to your trading account

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Lim Boon Tat
Lim Boon Tat, Mathematics at Cambridge University
Level 6. Master
Answered on 19 Jan 2020

You need to sign up for a brokerage first, and if you're buying foreign stocks, you will need to fill in a couple of funds, wait for approval, before you can deposit funds into the brokerage account so that you can buy the stocks. Generally for foreign stocks, the brokerage will be holding the stocks for you (Custodian), and will pay out any relevant dividends to you.

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Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 19 Jan 2020

I will answer your questions part by part:

-

"How do you actually buy stocks? Through a brokerage? "

Yes, you buy it through a brokerage. It can be directly linked to a CDP or as custodian

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"So if I am linked up with a brokerage, I just hold my position for long?"

Once you are linked to a brokerage (either CDP linked or custodian), you would efinitely be able to hold the shares for long

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"Does it mean im a share holder?"

For a CDP linked brokerage account, you will be a shareholder. If you had bought through a custodian, you will not be a shareholder

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"How are then dividends paid to you? "

Company will issue an announcement they will pay dividends on a certain date, you will receive it through the bank account of yours that is linked to the brokerage

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Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 19 Jan 2020

Hey there,

Yes, you buy them through a brokerage. However, you need a CDP account first - this is like your personal stock holdings "bank account". Brokerages are a medium for you to buy stocks, which will then be stored in your CDP account. And yes, it means you are a shareholder.

However, do take note that there are some brokerages like Stand Chart who has a custodian account - this means SC holds the stock on your behalf, and you are an indirect shareholder. It will not be deposited in your CDP account.

Dividends are paid to you via your linked bank account.

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Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 9. God of Wisdom
Answered on 08 Mar 2019

First, you sign up for a brokerage account. There would be a form to link to your bank account and setting up of CDP account.

Then, you log in to your brokerage platform. Select a stock. Click trade/buy, enter the price you want to buy. You can also double check CDP account if the shares are in there. You are now a shareholder! Can attend AGM too.

Once you successfully buy, you have T+3 days to ensure your broker gets money from you. If you don't provide the funds, broker will force sell.

When company declare dividends, you just shake leg, few months later on the dividend payable date, you should see the money deposited into your linked bank account.

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