Can I invest in stock inexpensively...like for under $500?
There are many ways for novice investors to get in the game—here are some basics:
GET ONLINE Websites such as morningstar.com and kiplinger.com both rank and define your options.
ASSESS RISK The stocks trading for cheap—$2 or less per share—are usually the riskiest bets. If you’re ready for risk, put a small portion of your money toward these securities. Invest the remainder in leaders in growing industries—like technology.
KEEP IT SIMPLE Also, buy shares in companies you know. If you drink Coke or shop at the Gap, you might notice quality shifts that could be reflected in the stock price. Product dipping? Sell! Frontline research can be a valuable financial indicator.
TALK TO THE WHIZZES Before you buy, check first with your bank to see if it offers trading services for clients. Bank of America has a brokerage arm that gives some checking account holders free trades. Online brokerages (TD Ameritrade, E*Trade Financial, Charles Schwab) have great research tools and charge about $10 a trade. Good luck!
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