How to Buy Oil Stocks
- 1). Establish an account with a stock brokerage company or an investment firm. Deposit the required amount into your brokerage account.
- 2). Research the oil companies whose stock you are interested in purchasing. Full service brokerage firms will be able to provide you with a detailed analysis of every financial services company listed on any major exchange, as well as many who sell through smaller, regional exchanges. Discount and online brokerage firms may not offer this level of service, requiring you to do your own research.
- 3). Search through your local library’s financial resources section. Most libraries have access to publications which rate stocks by Timeliness, Safety, and volatility. These resources may include Moody’s, Standard & Poor’s and Value Line among others.
- 4). Take advantage of such online research firms as www.morningstar.com that provide thumbnail sketches of most major exchange listed companies by industry and sector including stock charts, a basic description of the company’s business, recent news and a link to the company's website. Visit the website of any oil company that interests you. Make note of the contact information for their investor relations department.
- 5). Contact investor relations for the companies you are interested in pursuing. Request an annual report which will provide much of the raw data you need to make an informed decision. Read the annual report carefully to make sure you understand the company’s financial situation.
- 6). Determine the number of shares you wish to buy and the price you wish to bid. Contact your broker and instruct him to enter a Buy order. You may instruct your broker to enter the order At The Market and the trade will be completed at the price at which the stock is currently selling, or you can specify the price that is lower than the market. This order will be executed only if someone is willing to sell their stock at that price. If no sale is made the order will typically be canceled at the end of the day.