First principles of investing

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15. Buying your shares

To get an idea of the current price of the shares you wish to purchase find yesterday's closing price in the Financial Times Companies and Markets pages (or the financial pages of your preferred newspaper). Online services will generally show more up to date information. The figure will usually be the mid-market price - that is half way between the bid and offer prices.

The bid price is the price at which the market maker buys back your shares or units in a collective fund. This is usually lower than the offer price, which is the price he sells shares to you. The spread between the bid and offer price represents the market maker's fee or mark up on the actual cost.

When you place your order with your broker you may state the price you wish to pay if you have a limit or you may ask the broker to buy 'at best' - in which case he or she will obtain the best possible price at that time.

To help meet the payment deadlines you may be asked to use a nominee account. Under a nominee account you are still the beneficial owner of the shares but the share certificates are kept electronically by the nominee company which is the registered shareholder.

1. Five steps to establish your investment goals 2. Your attitude to risk and reward 3. The major asset classes 4. Which type of manager? 5. Your investment assessment kit 6. Is past performance a guide to the future? 7. Easy access deposits for emergencies 8. Fixed income products 9. A rising income 10. The choice of collective equity funds 11. Pensions and ISAs 12. Tax efficient but may be very risky 13. Selecting your shares 14. Your stockbroker 15. Buying your shares 16. Ethical Investment 17. When to sell 18. How to keep your portfolio on track 19. Do you need an adviser? 20. Conclusion

• First Steps in Shares
• How to Read the Financial Pages