Newby, help please

[#1]

Hi All Stupid question: If I buy 100 shares @ 89 cents, that equals to R89.00. So standard bank debits my account for R89.00, fair enough. Tomorrow that Share price drops to 80 cents, does standbank debit my account for R9.00 or is that only when you trade share installments? I want to buy shares to keep for at least 3 years and then sell them off, have I done the correct thing by buying shares, and not buying warrants or share installments. Please help. Rafiek

[SimonPB]

you pay the full price up front and that's it. The only time we debit/credit on a day by day basis is for futures.

[john_1]

Simon this guy needs more than a one line.

[steve_1]

Rafiek, sign up for the Intro courses etc. See details on the homepage. Most of them are free and excellent value for (no) money. Do not try and be clever with warrants and other derivatives at this stage....you WILL lose money. Ask me.

[Preston]

Simon. Just a suggestion. You need to revisit that brochure OST prepared regarding installment. All possible scenario should be included and discussed. Installment brochure needs to be a comprehensive as possible.

[#6]

If you buy 100 shares at 89c then you have R89.00 worth of share and Standard bank will have deducted your account by R89.00. This money will go to pay the guy who sold you the shares. If it drops to 80c then your shares are now worth R80.00. Standard bank WILL NOT deduct any money from you. If you sell at 80c then standard bank will get the R80.00 from the guy who bought your shares and deposit it into your trading account (excluding brokerage) then you would have made a loss of R9.00 If you're new to trading then start of with blue chips and med caps and DO NOT trade derivatives (futures, warrants, instalment..)

[#7]

thanks, the one liner said it all. will stay away from Warranst etc. until I know the game a bit better.

[saash]

and don't forget that the trade costs brokerage and stamp duties so you didn't just pay the R89.00 to buy the shares and you don't get all the money you sell them for if you sell at R80.00