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| *Ostroff, Fair and Company>>>Investing |
How do you invest in the stock market? |
How do you invest in the stock market? Motley fool is a great resource for beginners. There are many ways to invest in the stock market. Suppose you do your research and decide you want to buy stock in Starbucks. Well first you need to know the price of one share of that stock, it is currently 27.70. Then you decide how much money you want to invest. Say you have 500 dollars, then you could buy about 18 shares. Then you have to decide on a broker. You can choose an online broker, or a broker that is more expensive but gives you more advice and usually assigns you a financial adviser of some sort. These brokers require larger sums of money to deposit. Online brokers charge a small fee every time you buy or sell shares. Then you deposit your money (online brokers usually have a minimum amount you have to deposit, generally between 500 - 3500 dollars.) Once you deposit your money, you are then free to buy your 18 shares of Starbucks. Just remember to be smart and put in due research for the company you want to invest in. Then you can check how your stock is doing everyday by either looking in the paper or online at any financial site by entering its "ticker" which is the abbreviated symbol. (for Starbucks it's sbux) That is a rather simple introductory example, I hope that helps. Here's the web site which was designed exactly for people like you. Don't let the name fool you. It is very good. You can sign up for their email, and learn a little every day. http://www.fool.com/school.htm?ref=g02a0... The smartest thing is to put your available funds into at least 6 different types of shares. Some experts recommend you should put money in nearly 20 different shares to diversify safely. Spread your investments into totally unrelated sectors, e.g. banking and IT. This ensures if one sector fails to deliver results, you can earn decent returns from the others. You should not only diversify across the different sectors of the stock market but also into other investment avenues till you develop confidence in the stock market. An intelligent investor will use some portion of their investment money and invest it in secure investments like bonds and bank deposits though they provide less interest. http://debt-trap.com/category/tips-to-in... |
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