do you really make money on stock if you only invest 50.00.?

Answer 1

It certainly is not beyond the relm of possibility, but $50 is not normally considered to be sufficient capital. Even most mutual funds have at least a minimum initial investment of $500.

Your best option would be to find a stock selling for a very small amount of money, a dollar or less, that has some possibility of scoring big time. There are no doubt a few out there somewhere. The absolute minimum commission that I know of is $4.00--Sharebuilder. That is almost 10% of your captial, which is a pretty big hit right off the top.

But lets say just for argument sake, that you did buy a stock for $1.00 a share, you would be able to purchase 46 shares through sharebuilder. And if it turned out to be a really good stock, and 20 years later it were worth $100 a share, then your initial investment of $50 would be worth $4,600.

Home Depot has an adjusted price of $0.23 a share based on its current price and a high price of $70 in the last 20 years. So you see it is remotely possible. There are plenty of like examples, perhaps even thousands. The problem is first finding them and second holding on to them once you find them. There is a great temptation to unload a stock if it doubles in price and as a result miss the boat for the really long trip.

Answer 2

No. If the stock rose 100% it would be worth $100 and you'd pay two commissions to get in and then to get out--call that about $20-- so you'd end up making $30.

Oh, and by the way, Home Depot never actually traded at the $0.23 mentioned above, that is an adjusted price after splits.

Answer 3

Yes you can, a few years ago, I bought a some beaten down companies trading for under a buck. The stocks since then have recovered nicely.

Answer 4

it depends upon the stock and it activity

Answer 5

Don't waste your time. The answer is NO