Opening a securities account is relatively easy. It largely involves establishing your identity and depositing enough money to cover the initial purchases you want to make. For higher-risk investing, such as buying on margin, some additional forms need to be filled out, just as when you buy a car or household goods on an installment plan. Your broker's role includes seeking to execute your orders at the best possible prices. If you wish, the broker will keep your securities for you and send you checks for dividends and interest when these are received.
People sometimes feel embarrassed about the amount of money they have to invest.
They feel that the broker does not want to be bothered with small sums. However, the NYSE and many larger member firms spend significant advertising dollars to reach small, as well as large, investors. Relatively modest sums may be invested on a periodic basis, particularly in mutual funds but also in individual securities. As illustrated earlier, the power of compounding can build such contributions into a sizable portfolio. Types of Orders You can give your broker different kinds of instructions.