how do stocks work??? if i put 500.00 into microsoft.. what do think it would look like next year?? i mean, im thinking about doing it, but, im also going into the military and will not be able to do anything with it untill late june 07... i somewhat know how it works but, im not to sure.. and i was just wondering if it was worth it or not.
2006-10-06 04:38:29 · 3 answers · asked by amanda pr 1 in Business & Finance ➔ Investing
I own Microsoft at the moment. On a simple level, if you put $500 into Microsoft stock you would own approx 18 shares. Microsoft is a good well managed company, it has a lot of cash and a new product (Vista) coming out soon which will increase revenue. There is the possibility they might do something dumb like try and buy Yahoo, but I think that is low risk. All the same, I think the best you can hope for is the stock rises from about $27 per share now to around $33. If that happened your 18 shares would be worth $594. That's if everything works out and the market stays friendly, I would expect something closer to 10%.
So buying Microsoft isn't a bad idea but $500 is a relatively small amount to buy an individual share with. If something happens you're not going to be able to sell until June next year. My suggestion would be to buy a mutual fund. That way you're buying a small share of a much larger pool of money which a professional investment manager will use to buy shares for you. They can buy Microsoft if they feel it's good value and can seel when they feel it's the right time and switch into something else. Because a mutual fund invests in 50 - 100 companies the risk of suffering sustantial losses because one company share price falls is reduced.
2006-10-06 05:40:50 · answer #1 · answered by popeleo5th 5 · 0⤊ 0⤋
If you're 'relatively relatively wealthy', then I feel it could be greater so that you can seek advice a inventory dealer, who has extra potential on this subject, greater than any people: it could be the satisfactory for you Personally, I could opt for gold on the grounds that this can be a extra steady marketplace. Microsoft stocks aren't relatively lucrative just lately, possibly while the Windows eight comes out, you will have to feel of shopping into Microsoft.(that's approximately 2012)
2016-08-29 07:00:17 · answer #2 · answered by ? 4 · 0⤊ 0⤋
You know the stock market can be your friend one day and worst enemy the next. Talk to a financial adviser about your plans.
Honestly, you would be better off to put your money in a mutual fund and leave it alone but that's my opinion.
2006-10-06 04:50:56 · answer #3 · answered by nbr660 6 · 0⤊ 0⤋