ok im 23 and i know nothing about stocks or the market.. i have 5 grand to play with what wou ld you guys do with it RIGHT NOW
2007-10-08 18:22:32 · 5 answers · asked by anthony!!!! 3 in Business & Finance ➔ Investing
CD? whats that?
2007-10-08 18:43:07 · update #1
The first thing to learn to accept is that MOST people fail at doing any better than the S&P 500 index (an index tracks the performance of a group of companies that are usually representative of a particular market). People will tell you that real estate is a sure thing (not anymore of course), foreign exchange trading is a sure thing (good luck with that) or stocks are a sure thing (tell that to the holders of Worldcom). The truth is nothing is guaranteed to work.
Your first decision should answer the question of whether you want to learn all of the ins and outs of investing or if you're just looking to earn some money with minimal effort. Be warned that professional investors spend their entire working day studying company information and still often have troubles. Do you really have the time to study? I don't.
As for me, I fall somewhere in between no effort and a lot of effort. I favor what is called Exchange Traded Funds (ETF). They're like mutual funds in that they are collections of stock, but you can buy and sell them with a brokerage account. There is an ETF that allows you to match the performance of the S&P 500 which is like investing a little in 500 different companies. If you choose to open an account with ShareBuilder.com (I'm just a customer, not affiliated with them) you can have small investments made for you automatically every week or month if that makes you feel better than dropping a lump sum in one shot.
Good luck!
2007-10-09 03:17:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Put the money in a CD for 3 or 6 months. While your money is safe and getting some interest, learn all you can about stocks and stock brokerage firms. Good luck with your investing plans.
2007-10-09 01:40:56 · answer #2 · answered by Sreenu 4 · 0⤊ 0⤋
A CD is a good idea up front. This will allow you to earn intrest on your 5G's that you didn't have before. If you can afford to keep adding to this you could split that and start two Mutual Funds, or start an IRA. Of course we can give you all the advice in the world it's your money. Remember Educate yourself and your money will grow. You know what they say about a fool and his money.
2007-10-09 03:45:47 · answer #3 · answered by Billy Cooke 3 · 0⤊ 0⤋
Open a brokerage account at Zecco and I will help you for FREE. (I am a Portfolio Manager)
2007-10-09 04:16:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
learn the stock in investing stock and learn compeny
2007-10-09 02:37:50 · answer #5 · answered by harish s 1 · 0⤊ 0⤋