What is the best stock share for a first timer?

Answer 1

In my opinion the best stock for a first time investor is ALL the stocks. Let me explain, there are indexes that attempt to describe the movement of the entire market: some common indices are: the DOW index of 30stocks; the S&P 500 or the Russell 3000. There are Exchange Traded Funds (ETFs) that match some of these indices.

Personally I like SPY (Standard & Poor’s Depository Receipts) it is constructed to mirror the S&P 500. I have several reasons why I like this. First – any single company can have an adverse event. The share price could get slaughtered, heck the adverse event could be bankruptcy and you loose all your money. The ETF can’t go bankrupt, and specific events for individual companies do not effect the full index.

Second I like EFTs because I see the index published all over the place as a barometer for the market. Often I see the SP500 published or presented on TV, over the radio, on the internet -and from that report I know exactly what my investment is doing. With other individual stocks I have to go out of my way to get a current update.

You sell and buy SPY just like any other stock.

http://finance.yahoo.com/q?s=SPY