Stocks or Equities

The chance to own a part of the companies you love.

What are Stocks or Equities?

Stocks (or equities) are a security representing partial ownership of a publicly traded company. Purchasing shares makes you a shareholder and gives you a proportional ownership of the corporation.

Shareholders can benefit from selling appreciated shares (capital gains) and from collecting periodic dividend payments.

Dividends are paid out when the firm has cash that is not being reinvested into the company. Some shares receive higher payouts than others.

Learn more about stocks/equities below.

Benefits of Stocks or Equities

  • Easy to buy and sell

    Buying and selling stocks or equities can be an easy process, which can be done on any of our platforms, with a few simple clicks.

  • Gain ownership and the right to vote

    When you buy stocks or equities, you own shares of that company and in some cases, get the right to vote on various company matters.

  • Capitalize on growing companies

    As a publicly-traded company grows over time, their stock value can increase (or decrease). An increase in value can benefit shareholders.

Things to consider

When it comes to investing in stocks, you should know that anything can happen and nothing is guaranteed.

From news releases, to a change in management, to projected mergers, there are many factors that can affect the price of a stock. Because of this, you should be comfortable with market volatility and seeing your money potentially increase and decrease over short periods of time.

That’s why it’s important to understand the risks and to have clear goals about what you want to get out of your investments.

Is investing in Stocks or Equities right for me?

Stocks may not be for everyone, but could be a suitable investment, if you:

  • Enjoy following business trends, reviewing industry sectors and researching various companies
  • Are comfortable with market volatility and seeing your investments potentially hit record-breaking highs and ground-breaking lows in the short term
  • Want a more active role in managing your investments

The two types of Stocks

Depending on your needs and circumstances, there are a couple stock types for you to consider.

  • Common stock

    Most common stocks give shareholders the right to vote on various company matters and may also pay dividends.

  • Preferred stock

    Shareholders may receive higher (and earlier) dividend payouts than common shareholders, but don’t usually have voting rights.

Discover more about Stocks

Dividends are payments made by companies to a certain class of shareholders who own stocks in those companies.

Dividends are usually paid when a company has excess cash that is not being reinvested into the company.

If a dividend is announced shareholders are notified of the following:

  1. The Declaration Date, which is the date the dividend is declared

  2. The Record Date, which is the date all shareholders on record are entitled to the payment

  3. The Payment Date, which is the day shareholders will receive the dividend payment

  4. The Ex-Dividend Date, which is the date the stock no longer trades with the dividend

Dividends are often paid on a quarterly basis and the amount received depends on the amount of shares (of a certain class) you own in that company.

For example, if you own 100 shares and are paid out $.50 for every share, you may get $12.50 every quarter or $50 annually.

There are two major types of stock markets:

  1. Auction market

    In an auction market, the prices of exchange-listed stocks are determined by supply and demand. For example, the higher the demand (and lower the supply), the higher the market price. The lower the demand (and higher the supply), the lower the market price.

    Individual client orders to buy a stock are relayed to the exchange, where they are posted and matched with an order to sell. The Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE) are examples of auction markets.

  2. Dealer market

    In a dealer market when you trade stocks, you are buying from or selling to a dealer that trades with a network of other dealers.

    These are negotiated markets where the bid and ask quotations are entered by the dealers acting as 'market makers' in a particular security. The Canadian Dealing Network and OTCQB in the U.S. are dealer markets (which are sometimes referred to as ‘over-the-counter’ markets).

Market Order

A market order is an order to immediately buy or sell a security at the best bid or ask price available on the market.

Market orders may provide an opportunity to have an order filled but gives you less control over the purchase or sale price.

There are two types of market orders:

stop loss order is an order that becomes a market order when the stock trades at, or through, the stop price. The stop price can be thought of as a trigger.

stop buy order is the opposite, which is effective when the price reaches or exceeds the stop “trigger”.

Limit Order

With a limit order, you set the maximum price you are willing to pay for a stock as a buyer or the minimum price you are willing to accept as a seller. The buy or sell transaction will not be filled unless the “limit” price is met.

Limit orders are valid for the following durations; Day, GTC (Good ‘til Cancelled), GTD (Good ‘til date MMDD), Day+Ext (both regular and extended market sessions for that day).

day order, which is an order valid only for the day it is entered on.

An open order remains valid at a specific price until the order is executed or cancelled. 180 and 90 calendar days for U.S and Canada, respectively.

  • Is there a difference between a stockbroker and an online brokerage? If you want to learn more about the difference between a stockbroker and online brokers, this article may be for you.

  • Short selling? Shorting a stock? What are the types of strategies? Do I need a margin account? How does all this work? Interested in learning more? Then read on.

  • Investing in dividend stocks may be considered as part of the goal to building long-term wealth. If you are interested in learning more about dividend stocks, this article may be helpful.

  • Stocks are a popular form of investing these days. It helps to understand how to buy stocks before deciding whether or not investing in stocks is right for you.

  • Does the thought of investing in the stock market scare you? Learn the basics about how the stock market works and how you can start investing on your own.

Stocks pricing: clear and simple

It's the service, support, and overall experience of investing with us that defines the value for you.

  • Standard: $9.99 flat rate to buy or sell

    Canadian & U.S. stocks standard online commission rate.

  • Active trader: $7.00 flat rate

    150+ trades / quarter on Canadian & U.S. stocks, + $1.25 per contract for Canadian & U.S. options

  • What you get:

    • Real-time market data and quotes for the Canadian and U.S. markets
    • Exclusive research reports
    • Educational resources that are online and on-demand

Start investing in Stocks or Equities with TD Direct Investing

  • 1

    Open an account

    Select the TD Direct Investing account you want to open online or book an appointment.

  • 2

    Fund your account

    Transfer funds into your account with the online bill payment or funds transfer feature – or set up recurring deposits. Moving investments from another brokerage? Ask about how we could cover the transfer fees up to $150.1

  • 3

    Start investing toward your goals

    Build your portfolio using ETFs, stocks, options, mutual funds, GICs and more.

Looking for a simple, easier way to invest?

With TD EasyTradeTM, it's easy to build a portfolio. With a few taps, set goals and start investing with stocks and TD ETFs. Then track your progress right in the app.

Open an account online – it's fast and easy

Whether you're new to self-directed investing or an experienced trader, we welcome you.

  • Apply online

    It's easy to open a cash, margin, RSP, or TFSA account.

  • Call us

    We're here for you. Monday to Friday, 7 am to 10 pm ET

    1-800-465-5463 1-800-465-5463
  • Book an appointment

    Let's chat, face-to-face at a TD location convenient to you.

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