General Motors Stock

• 1). Do the research. To make a decision on whether GM is right for you, compare it against the industry. Consider its past, present and projected earnings. Check out its price/earnings ratio -- the higher the number, the riskier the stock purchase is considered. Also, check out the products the company is selling and decide for yourself if they're ready for the 21st century. If your instincts tell you GM is set for that rebound, with or without a bailout or a white knight rescue, and that its products are A-One, buy away. However, as with any investment, don't spend money you're not prepared to lose.
  
  
• 2). Choose a brokerage account. There are two types of brokerage firms with which you can place orders: full service and discount brokers. If you have already done your research, made your decision and set your sights on purchasing GM stock only, a full service brokerage company is a waste of money for you. You do not need the full portfolio service and advice it offers. Look at firms like Charles Schwab, E Trade, Scottrade, Ameritrade and Share Builder.
  
  
• 3). Open an account. Generally all you need to open a brokerage account is your personal contact, tax and employment information, a link to a checking account and a minimum starting deposit. Some discount brokerage firms do not even require a minimum deposit for transactions. You can open an account quickly and simply online.
  
  
• 4). Follow the General Motors exchange symbol (GM) on the New York Stock Exchange. Before you make your purchase, you should follow the stock to get an idea of its trade price. Clearly, you want to purchase low. However, even the savviest of investors cannot agree on the best way or time to buy. For every guru espousing a code that pushes for a buy-on-Friday philosophy, there's another saying buy on Wednesday. Watch the stock for a week and go with your gut.
  
  
• 5). Initiate a trade. For online transactions, you will need to create a user I.D. and password. Once you have done so, you can begin trading. Sign into your account and enter the brokerage trade field. Enter the GM exchange symbol, how many shares you wish to purchase and the "limit" at which you want to purchase. This is the dollar amount above which you will not go. You can also choose to purchase at market, which will buy the stock at whichever price it is currently trading. If you choose "limit," you will need to also set a time frame for that order: day only, good-til-kill or a specific amount of days.
  
  
• 6). Confirm your order. Once you have placed the order, you will be prompted by a page that will give you the full amount of your purchase including the broker's commission. You can confirm or cancel the order at this point.
  
  
• 7). Check order status. If you bought at market, you can expect a near immediate purchase. However, if you set a limit, you will need to log in periodically to check the status of your order. When the order is complete, your account will indicate as much.