Stock Investments Anyone?
Investments in the stock market may be more profitable and worthwhile than you think.
But first things first! Before contemplating on trading in stocks, you need to be sure you no longer have huge debts to pay and that you have some money piled away in a bank, or earning in the money market. An extra $30 might be a good way to get the feel of the market.
There is such a thing known as Dividend Reinvestment Plans (DRPS) and Direct Stock Purchase Plans where you can put in your small investments without having to go through a stock broker. Your purchases for these types of stocks can come direct from the company and its authorized personnel. The fact that you don't have a broker for them will mean, of course, that you stand to earn more from them. Another good thing about investing in these types of stock is that you can come to an agreement with the company to set up an automated payment plan for your account. This means that you may deposit small amounts of money into that account. The individual payments that may not even be good for purchasing one share of stock, but the stocks you get to buy will correspond to the cumulative value of your deposits. Also known as "Drips," these stocks are a hassle-free way to build up your assets at your own pace. Well over a thousand sizeable companies offer these stocks, often for free, but whenever they are not, they are priced so low that your $30 will go a long way towards buying them.
Your few hundred bucks might be good for investments in an index. In stock market lingo, an index represents a group of shares traded in the stock market. For your $200 or $300, consider investments in the Standard &Poor's 500 or the Wilshire 5000. Microsoft and General Electric among other famous companies, are included in these indices.
Now if you can manage $500 investments, your avenues in stock trading get even more varied and broad. You could set up an account with a stock broker. But if you do set up a brokerage account, try to keep your expenses at or lower than 2 percent of the transaction value. Otherwise, you lose.
Things get even better if you can manage a brokerage account which earns 10 percent annually and to which you consistently add $1,000.00 per year in investments. $1,000.00 divided by 360 days is a question of saving $2 a day. So after getting your brokerage account, you could start saving $2 a day so that on the next year, your capital can grow by another $1,000.00, and so with the next year and the year after that. By the time you retire, given that you managed your brokerage account efficiently, you will have a sizeable sum to pick out of your shares of stocks.
Investing in stocks may not have as high a yield as investing in business, but with less effort on your part, you can make sure that your profits keep steadily flowing in.
But first things first! Before contemplating on trading in stocks, you need to be sure you no longer have huge debts to pay and that you have some money piled away in a bank, or earning in the money market. An extra $30 might be a good way to get the feel of the market.
There is such a thing known as Dividend Reinvestment Plans (DRPS) and Direct Stock Purchase Plans where you can put in your small investments without having to go through a stock broker. Your purchases for these types of stocks can come direct from the company and its authorized personnel. The fact that you don't have a broker for them will mean, of course, that you stand to earn more from them. Another good thing about investing in these types of stock is that you can come to an agreement with the company to set up an automated payment plan for your account. This means that you may deposit small amounts of money into that account. The individual payments that may not even be good for purchasing one share of stock, but the stocks you get to buy will correspond to the cumulative value of your deposits. Also known as "Drips," these stocks are a hassle-free way to build up your assets at your own pace. Well over a thousand sizeable companies offer these stocks, often for free, but whenever they are not, they are priced so low that your $30 will go a long way towards buying them.
Your few hundred bucks might be good for investments in an index. In stock market lingo, an index represents a group of shares traded in the stock market. For your $200 or $300, consider investments in the Standard &Poor's 500 or the Wilshire 5000. Microsoft and General Electric among other famous companies, are included in these indices.
Now if you can manage $500 investments, your avenues in stock trading get even more varied and broad. You could set up an account with a stock broker. But if you do set up a brokerage account, try to keep your expenses at or lower than 2 percent of the transaction value. Otherwise, you lose.
Things get even better if you can manage a brokerage account which earns 10 percent annually and to which you consistently add $1,000.00 per year in investments. $1,000.00 divided by 360 days is a question of saving $2 a day. So after getting your brokerage account, you could start saving $2 a day so that on the next year, your capital can grow by another $1,000.00, and so with the next year and the year after that. By the time you retire, given that you managed your brokerage account efficiently, you will have a sizeable sum to pick out of your shares of stocks.
Investing in stocks may not have as high a yield as investing in business, but with less effort on your part, you can make sure that your profits keep steadily flowing in.
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