How do i buy and sell stocks if im underaged?

Question

I am 15 and i wish to buy some stocks, i dont know much about buying and selling. I need a website or book or something that would help me get a move on this. Also, is there any restrictions for underaged kids?

thanks.

Answer 1

you might have to have a parent or gaurdian help to set up your brokerage account until you are 18. check out ameritrade.com or etrade.com or one of the mutual fund co's like fidelity.com or troweprice.com do your homework on the stocks and mutual funds and don't be afraid to ask questions. it's pretty impresive to see someone as young as you interested in stocks and investing. good luck

Answer 2

Your parent or guardian can open an account for you registered as "Old Lady I Love Food's Mom FBO I love food". (The FBO means "For the benefit of"...) You can then buy stocks, and as long as you don't sell any there will be few tax implications (If you sell or make huge dividends, Mom will owe the taxes on her return.)

At 15, if you invest $10 a week into a stock index (like SPY, which tracks the S&P 500, and grows at an annual rate of about 11%, you'd have almost $750,000 by the time you were 40 without ever increasing the amount you invest each month!

If you want an easy place to open an account, try either http://www.sharebuilder.com OR http://www.buyandhold.com

Good luck!

It's easy to get rich slowly!

Answer 3

Hi,

I don't think you can open a brokerage account - too young, but there is a way to invest in stocks without a broker and if you keep reading I will tell you how.

The method is called DRIPs.

A DRIP is a Dividend Reinvestment Plan. It offers indidual investors, even a15 year old, a cost-effective way to build equity in a stock.

The DRIP is run by a corporation and it allows people to make cash purchases of stock or to reinvest dividends (if any). I have a DRIP program with Goodyear Tire and Rubber, but it ran into problems a few years ago and stopped paying dividends.

You only need one share of stock to become eligible. In some cases it can be purchased directly from the company, but normally needs to be purchased through a broker. You could have your parents open up an brokerage account and purchase the share in your name.

There are no fees or commissions when you reinvest your dividends.

There are lots of companies that do this - over 1000. The company likes them because it's a low cost way to get capital or cash for their business. Because of that companies welcome new investors into their DRIP plans.

What makes DRIP popular is that most of the plans require very small cash outlays even as low as $10, some as low as $5.

Some of the world's largest companies like IBM, AT&T, and McDonald's have DRIPs.

Very wealthy investor like DRIPs because it allows them to bypass the broker's commisssion which lowers the investors cost of investing

Another benefit is known as dollar-cost averaging where a fixed amount is invested on a regular basis. The stock rises and falls with the market, but by investing periodically, the average cost of the shares tends to average out and not be affected by the market swings.

Liquidating or selling your shares can be a problem because brokers want to get a commission for selling and buying stock for investors, but the company will buy them back in some cases.

Dividends are considered income and used to be taxed by the IRS, but a change in the law makes them non-taxable. But if you sell your shares and make a profit you have to pay tax on the profit. There are two types of taxes for profits or capital gains: one is short term and costs more than the other kind of capital gain which is called a long-term capital gain and that occurs when you hold a stock for more than six months.

Goodyear Tire and Rubber's stock symbol is GT, but don't invest in this one because it doesn't pay a dividend yet..

YUM is the symbol for Yum! Brands, Inc and they own Pizza Hut, Taco Bell, and Kentucky Fried Chicken on the New York Stock Exchange (NYSE)

This Web site has a list of DRIPs: http://www.directinvesting.com/

To find DRIPs that pay good dividends, look in Investors Business Daily, Barrons, or the Wall Street Journal. There is a column that has dividends and return %. Most don't pay as much as a Treasury Note or a CD, but they have earnings growth to offset that income disadvantage. Than look them up in the URL above.

Google this keyword "DRIP lists" for more Web site. Be careful. Some of them charge a fee to sign up.

Kindest Personal Regards,

Walt Brown
Site Build It Certified Webmaster
[e-mail]

Answer 4

Wait outside a brokerage house for and old drunk, ask him to buy you some stock,when he goes out the back door with your money,go in yourself,and DONT FORGET TO ASK FOR A BOTTLE OF OLD HARPER.

Answer 5

wow your smart for being 15 i wish you luck. i hope you get the help you need .theres alot of websites with information search you may find what your looking for!