The process of buying and selling goods or services is trading. When the goods are kept for sale or distribution; they are termed as stock.

The stock has different kinds. One is the stock of goods and merchandise. The other is stock trading; which is being done in the financial markets. A stock trader is an investor in the financial market. He invests his money in shares of different companies. The stock trading can be done through stock subscription or a stockbroker.

Since ages, it is a belief that direct communication is far better than indirect communication. In terms or trading stocks and merchandise, when a broker is involved; the first thing to be considered is the commission. The second constraint is time. One has to follow their rules of time span. Dependency is also a key factor.

On the other hand, stock subscription letter is the best way to deal directly with the respective corporation. The demands can be dealt easily. One can easily cope with the rates. In this case, lesser time is needed.

Stock trading is mostly a part-time business but it can be a full-time business. It has equal chances of profit and loss. It is in fact much risky. But if one learns the tips and tactics. He/she can cope in the best way.

But, in stock subscription letters; some factors should be considered with much attention. One should be meticulous regarding the trades. The social and economic situation of a country must be known. The limitation of purchasing or buying should be known.

Following letter can be used for any kind of stock subscription.

Letter

Subject: Shares subscription

Dear Mr. /Ms.  [NAME HERE],

I hope you are good. I [name here], managing director [company name] thereby undersign the said subscription of the shares in your company [company name]. My company [company name] is subscribing to these shares for five years. I agree to pay the said amount. Enclosed with the letter is the check payable to your company. I would be waiting for the acceptance notice of this subscription. I agree with all the profit and risks associated with this investment.

Yours Truly

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