What's the lowest amount of money you can adequately invest in the stock market?

Answer 1

A good rule of thumb is that if you have anything less then $10,000 to invest you should purchase Mutual Funds. Factors to consider when talking about how much capital you need to have before investing include: price of shares you want to purchase (you should still try to diversify), the transactions costs, taxes (!!!!!), amount of time you plan to hold the asset. Remember in order to avoid short-term cap gains tax you need to hold the asset for a year...short term cap gains are higher then long term (in most cases). If my memory serves me correctly short-term is considered, for tax reasons, to be earned income...if you're in a 28% tax bracket, for example, you'll pay 28% whereas long-term is about 15%. Bottom line if you're investing $2,000 in a stock valued at $50/share when you buy you're buying 40 shares...if the stock price goes to $55/share you have $2,200 less transaction costs and taxes...it takes a lot of growth for the investment to pay off.

Answer 2

The key word here is "adequately". My guess is your goal is the same as everyone else - you want to make money and have realized the stock market is where it is at. Wise choice.

First, max out your 401(k) at work.

Then, max out your Roth IRA.

Both choices are where you will invest in stocks by picking from a selection of funds. This is really the same thing as your question - the funds I'd recommend are the ones that diversify as broadly and widely as possible.

So, back to your specific question. For about $25 per month you can contribute to a mutual fund that is called a stock index - in essence you buy one equal portion of EVERY stock in the market! Talk about diversification!

Let me encourage you to then put your second $25 into other countries stock index funds.

Now, let's say you have done all the above and you feel an urge to buy single stocks. Not the best route, but if you promise to buy and hold, then I'd recommend jumping in with at least $10,000. Pick 10 companies and put $1,000 in each. Then build them up slowly until you have $10,000 in each, then add the 11th company, build it to $10,000 and so on.

Good luck.

Answer 3

i have been making an investment in equities (stocks) for round 10 years now. between the most important assistance you should use is to make investments in a employer/product that you realize and that you recognize. at the same time as i replaced into youthful i appreciate video games, fantastically PlayStation, so I invested my money in Sony. I made some reliable earnings from that challenge. so a options as getting a broking service that is totally as a lot as you. in case your youthful and do not really have something to lose, i.e. retirement, than try utilizing between the numerous on line brokerage organizations, i in my opinion i exploit a employer, Smith Barney. i encounter it a lot less confusing for some different person to look after my affairs. Your different question to no matter if there are any web pages to assistance on a thanks to make investments contained in the inventory marketplace, there are besides the undeniable fact that a lot of them will value you, yet you could really adequate hit upon a loose informational website, or you could bypass to a book shop and discover 1000's of books that permit you recognize a million options to make investments. finally, there there are diverse different investments than stocks which could make you " huge money". actual belongings is an particularly worthwhile company to make investments your money in, Hedge money, besides the undeniable fact that that's restricted to permitted traders in straightforward words, ETF;s, substitute traded money, and many more effective. desire I helped slightly and desire you the suited inclusive of your making an investment.

Answer 4

The minimum amount is one share. But stock broker commission will have a fixed minimum of about $20. So the buying cost will be proportionally higher.

Most people invest a minimum of $1000 to make any profits worth while.

Answer 5

Asuming you open your account at Scottrade with $714.00 you could buy $350.00 of Company A plus $7.00 of comission and $350.00 of Company B plus $7.00 of comission and hold them until you make at least 5% (Your comission will be 4% including the $7.00 you pay when you sell) and you would make a profit of 1%

If your stocks are up at least 10% in the first year you will beat your checkbook (5%)

Answer 6

If you're part of an Investment Club you could get by with as little as $50.

Answer 7

$500 opens a scottrade account. Pick cheap stock companies and put $250 each into them. eg gateway computers, sirius satellite radio, ford motor company

Answer 8

I never put anything less than $1000 into a single security.