Any newcomer beginning his operations in the financial market, ask this question. You can sell and buy shares on the stock exchange, through a broker, or directly if the securities have not passed initial public offering (IPO). The order of sale depends on how you got the shares at your disposal.
How to buy and sell shares purchased from a broker?
If you already have an account with a brokerage company and you purchased the shares through it, then you only need to choose the right timing and sell them with maximum profit. For trading, brokers provide software (or mobile apps), so that you can conduct your transactions online.
How to sell shares by proxy?
You can sell the shares to another person or someone can do it for you. A shareholder’s representative can perform various manipulations with securities if he has a power of attorney. This is somewhat more complicated than an individual acting independently, since it requires an additional set of documents.
However, it is possible to sale securities by proxy. Do not forget that securities trade infers a fairly extensive list of operations. Consequently, the scope of the representative's mandate should be well-defined by the trustee in the power of attorney.
Why sell shares?
It would seem that securities are a good investment instrument. You need nothing more but to purchase shares, and they will always pay off dividends. In fact, even blue chips do not give a high dividend yield. 3-4% of the market value of the share is a good indicator. The main profit comes from the sale. The annual percentage can be 40-50% or yet more. But, alas, there are risks.
For example, in early 2017, the shares of The Boeing Company were worth over $ 157. A year later their value reached $ 300. Each share provided its holders with almost $ 150. Annual yield was close to 100%, save for dividends. But if the shareholder holds these shares longer, the value may sag and the profitability will change.
It is not necessary to purchase blue chips or shares for quick sale. History knows examples of brilliant investors whose strategy could be characterized by a simple moto: ‘Invest forever’. One of them, Warren Buffett, the ‘Wizard of Omaha’, as he is known on the stock exchange, became the richest person in the world, buying up stocks of undervalued companies and holding up for at least 10 years.
In 1989, Buffett bought a 9.16% stake in Coca-Cola. At that moment, the price of one share barely reached $ 5. Today, the value has exceeded $ 40, and Buffett's capital now is more than $ 16 billion (of course, with other investments). The investor still holds the shares, despite some falling in the company.
How to sell shares at a profit?
The rules are simple. Operate through a broker and sell shares on the stock exchange, monitor quotes, company's standing as well as industry news. Calculate the dividend yield and profit from sales - thus you can obtain more. And the key is not to be in haste with your decisions and do not sell shares cheaper than you have purchased them.