Business Studies, asked by nayabsohail786, 29 days ago

What are the cost I have to pay after starting own stock trading business?​

Answers

Answered by granthcnanda
1

Answer:

A stock trading business relies on your ability to trade a variety of securities. These investments include stocks, bonds, stock options, warrants, futures and even precious metals. Trading for a living means you must consistently be profitable and draw an income from your profits at the same time. Any declines in your investments negatively impact your income. When you want to make a business of it, you may need certain licenses depending on whether you are working with the general public or not.

1

Get startup capital. Accumulate the money you need to start investing. This may be the most challenging part of the process since this money will come from personal savings you've accumulated over time or money you borrow from a friend or family member to start your investing career.

2

Study investment philosophy. You'll need an investment philosophy to guide you when making money. A popular and very well known book on investing is "The Intelligent Investor." This book outlines the methods used by Warren Buffet and relies on the theory of value investing.

3

Get your Series 7 license and incorporate your business. A Series 7 license is required when you do business with the general public. To collect money from outside investors, you must have this type of license. You'll be selling securities to other people, even though you're investing alongside them.

4

Incorporate your business. Set up a corporation to handle investments. If you are doing business with the public, you may qualify for tax deductions if you are doing business as an investment company and pay out profits to investors. The deductions are made against any corporate income you receive from investing.

5

Claim a deduction when you lose money. All investment losses are deductible regardless of whether you work for yourself or you have outside investors. You must sell your investments to claim a loss, however.

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