2006-10-11 04:35:59 · 4 answers · asked by yeilyj 2 in Business & Finance ➔ Other - Business & Finance
Although the stock market is risky, historically it has performed better as a group than many other investments.
To buy you will have to choose a broker.
There are on-line brokerages such as Scottrade where you can make your own decisions as to what stock to buy and when to sell. They will let you open an account for as little as $500 with no fees unless you trade. all brokerages will charge a commission or fee when you buy or sell. Brokers that give advice and more personalized service will charge higher commissions.
When you buy stock you own shares of ownership of the corporation you invest in. In the stock market a price per is quoted which changes constantly. If the stock you buy is selling for $5 per share and you buy 100 shares you will have to pay $500 plus whatever commission your broker charges.
Owning shares allows you to vote on major decisions such as choosing board of directors. If the company you choose is profitable you will receive distributions from the corp profits called dividends based on the number of shares you own.
Many companies offer preferred stock which pays interest.
Hence, with preferred stock you will have some stream of income even if the price per share goes down.
2006-10-11 04:57:22 · answer #1 · answered by goldenboyblue 3 · 0⤊ 0⤋
I assume you are saving for retirement. If so I would suggest, for a beginner, to go to a site like Vanguard. Set up a "Target Retirement Fund". How this works is very simple. You tell them when you want to retire. They create a balanced portfolio that starts out with more risk when you are younger and then becomes more "safe" as you age and approach your retirement goals. The advantage of Vanguard is that their fees are some of the lowest among all of the major investment sites.
2006-10-11 04:41:45 · answer #2 · answered by Spectral_one 2 · 0⤊ 0⤋
I suggest you start by getting a good book on the topic, it's not something that a few sentences will reveal any "secrets"...
BUY LOW, SELL HIGH!!
2006-10-11 04:45:55 · answer #3 · answered by C-Man 7 · 0⤊ 0⤋
http://www.libsci.sc.edu/bob/class/clis748/Studentwebguides/investing%20for%20beginners.html
Charles Schwab and Etrade have a lot of info for beginners.
2006-10-11 04:47:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋