Trading Stocks: How to Buy and Sell Stocks

Trading stocks means buying or selling an ownership share in a corporation. Here we explain exactly how stock trading works and what you must consider when you start investing in individual companies.

Investments involve risk.

The Stock Exchange Acts as a Coordinator

When you buy or sell stocks, you do so on a secondary market called the stock exchange.

  • You buy stocks from other investors, not directly from the company itself.
  • The stock price is the latest price agreed upon by buyers and sellers.
  • The stock exchange acts as an automated coordinator that instantly matches buyers and sellers.

At Quartal, you can trade stocks on over 15 global markets, with brokerage fees starting from just 1 SEK.

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How Do I Choose the Right Stock?

Unlike mutual fund investing where a professional manager handles the portfolio, as a stock investor you must make your own active choices.

1. Invest in Multiple Sectors

Diversification is critical. Invest in companies from different sectors (e.g., technology, healthcare, industrials) to protect your portfolio from sector-specific downturns.

2. Analyze the Company

  • Profitability: Is the company generating cash or losing money?
  • Reports: Review recent quarterly and annual reports for guidance.
  • Dividends: Companies that pay dividends prove they generate enough surplus to reward shareholders.

3. Geographic Markets

Multinational companies often provide inherent geographic diversification, reducing your reliance on any single domestic economy.

Risks of Trading Stocks

  • Market Risk: Stock prices can fall due to broad economic events.
  • Bankruptcy: If a company goes bankrupt, you may lose your entire investment.
  • Delisting: Delisted stocks are extremely difficult to sell and may be moved out of your ISK.

How to Get Started at Quartal

  1. Open an ISK: We recommend an Investment Savings Account for tax efficiency.
  2. Transfer Funds: Move cash from your bank account to your ISK.
  3. Execute Trades: Search for your desired stock in our app and place your order.

View full list of available stock markets

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MZ

M. Zaid

Financial Systems Developer & Researcher

Muhamad is a developer and researcher at KTH Royal Institute of Technology specializing in data-driven systems. He is the creator of the Company Valuation (DCF) platform, a professional-grade tool that helps investors calculate intrinsic value across global markets. Through Quartal.se, he bridges the gap between complex financial regulations and practical, tool-based investing.