My mother is a real estate broker for an extremely large brokerage company. It's actually the 4th largest in the World. She told me that just like Microsoft along time ago, her company is getting ready to sell within 2 years because the CEO and Founder is retiring. She said that they are offering 1000 Free shares to all the employees, and any friends and families of employees who become members free shares also before going PUBLIC WITH THIS. And they predict it will be worth atleast $20-$30 a share.
SHE wants ME to sign up as a member so I will get 1000 free shares, because if I sign up as a member under her, she will get an extra free 1000 shares on top of the 1000 free shares shes already getting. Now my mom has sign up my dad, and 22 others people already.
I heard mutual funds are better than stock trading. Which one is this? Should I sign up? I have by tonight to sign anyone I know up under me,so please tell me asap.
2006-12-31 06:22:37 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
yeah, thats what my mom meant, Not FREE, but $400 per 1000 Shares.
2006-12-31 06:59:56 · update #1
Stephan is right that mutual funds have middle-men and professional managers but he is incorrect in saying that stocks are better. The true is answer is: it depends.
Most individual investors won't come close to beating the market and most won't outperform mutual funds. Also, it is very expensive to get the same spread on your money in individual stocks as you do in mutual funds. In a mutual fund, you'll typically get 50-150 different stocks and bonds.
Most stocks worth having trade at $10 and up. So, if you have $100 you can get, at most, 1 share of 10 different companies. A mutual fund may trade at $20 per share but within that fund you have a lot of different stocks and bonds. You'll only get 5 shares of that fund, but you'll have fractional shares in many more companies. This is important because it helps your portfolio (again HELPS, does not PREVENT) from falling victim to an Enron or a Worldcom. One of your mutual funds may have had one of these companies in it at the time of the fall, but it was only a small percentage. However, the inverse is true too -- in most cases you won't see mile-high returns like Google.
Many financial advisors (and there is a difference between a financial ADVISOR and a stock broker -- an advisor has more licenses and can legally give written advice) recommend mutual funds unless you have $250,000 - $500,000 to play with.
However, that is only a rule of thumb. Your best bet is to talk to a professional about your own situation and desires.
Hope this helps!
Hunter W
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2006-12-31 10:51:00 · answer #1 · answered by Hunter W 1 · 0⤊ 0⤋
Extremely Large Brokerage Companies ARE NOT PRIVATE.
Shares are NOT FREE.
Employees can be given the option to buy as much as 1,000 shares if they wish to do so. However, giving them the shares for FREE is not wise for a company.
Why would a Company will give away itself to an unkown and unrelated person like your friends or relatives?
Let me tell what's really happenning.
Someone smarter than you is going public with a Dummy Corporation (They don't build anything, they don't sell anything, they don't buy anything) and they need many current shareholders.
They will sell 10,000,000 shares to nice old ladies and greedy idiots for $2.00 and they will promise them the stock will rise all the way up to $30.00 in the future and when the stock hits $10.00 they will dump all their shares (They bought them at $1.00) and they will make millions and millions of shareholders will lose their money.
I strongly suggest you to invest a few hundreds of dollars and buy the Entire Six Seasons of "The Sopranos" on DVD and watch them from the beginning.
You will understand the stock market a lot better if you do that.
You are helping the Italian Mafia to steal millions from others.
2006-12-31 06:52:55 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Stocks are simply part ownership of a company. A stock market is a place where company stock is traded daily. A trade is a buy or sell of an asset. ex. E-trade charges $7 for a trade, say if you wanted to buy 100 shares of Wal mart stock, it would cost you $7, and $7 to sell those stocks as well. I don't use any trading website.
2016-05-23 00:02:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Actually, stocks are better than mutual funds. Mutual funds have managers and employees who all have to get paid out of your earnings, which reduces your returns. If the fund's managers are very good, this might be worth it, but most can't beat the market substantially enough. Buy stocks, it cuts out the middlemen in the mutual fund who get paid before you do, and so you'll make more money.
2006-12-31 10:07:44 · answer #4 · answered by STEPHEN J 4 · 0⤊ 0⤋
This is stock trading.
I'd personally do it and get as many people as I can to sign up as well. If this is what it sounds like and this is an IPO kind of deal, it's VERY rare for an IPO to not make money. Hell if you're only in it for a day and your FREE $20 shares go down to $15, you can make $15,000.
2006-12-31 06:32:06 · answer #5 · answered by Modus Operandi 6 · 0⤊ 0⤋
That is a stock as mutual funds are a group of stocks of about 500 companys.
2006-12-31 06:31:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
there is no way the shareholders would let a company just give 1000 shares worth 30 bucks to all the employees,their family,and their friends, it just wouldnt happen
2006-12-31 06:50:56 · answer #7 · answered by swenjj 4 · 1⤊ 0⤋
If the shares are free, what are you waiting for? Can you get some for me as well?
Even if they are not free, BUY them. Your mother has a responsible job and "inside information" which is invaluable. Are you still sitting down? Run, man, run!
2006-12-31 08:30:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋