Stock Markets Exposed

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Hello I am a college student and I am very interested in investing the little money i have in the stock market.I have no idea what to do or even where to start.As of now all i have to invest is around 500 dollars.can i do anything with that?Please I would reallt appreciate any help.Happy Holidays to all

Public Comments

1. You might want to start with a CD account at your bank. When the interest accrual then you can think about other options.
2. Happy holidays to you as well. $550 is not a lot to begin investing in the stock market. However, that does not preclude you from getting involved. I must caution you though that this may not be the best time to be putting money at risk in the market. Deciding on where to invest is a difficult thing because of the number of factors involved such as how long you would like to keep the funds invested, your tax bracket, your tolerance for risk, your income at this time and your current expenses. Stock for the most part should be considered a longer term investment unless you are a speculative trader. If these funds are what you would call "play" money, or you can afford to lose it, then you have more options and can take more risk. If you are looking to invest in one or two issues (different companies), I would look for something cheaper, although the old "I have to buy an even 100 shares" (called a round lot) is not really valid anymore You can buy 13 shares or 5 shares of you want. It depends on what you can afford in any given stock. The best advice I could give you without a great deal more information would be to either look into a good stock mutual fund (no load if you are not holding it for at least 2 yuears) or find a stock of a company you might know someting about and have products you think are great such as starbucks (SBUX) or Crox shoes (CROX). Mutual funds may have higher minimum investments than fit your needs. Stocks always carry a trading cost. When you do decide to buy something, look into Scotrade or Amreitrade as they are less expensive. Hope some of this helps.
3. It's great that you want to start investing. However, you may have a slight problem. You may have to search for a broker or mutual fund company who will open an account for you with such a small amount. Most mutual funds require minimum initial investments of $1,000-$3,000 unless you're opening an IRA. I suggest that you stash it in a high yield savings account while you save more money. In the meantime, pick up some books on basic personal finance and beginning investing. You can also learn a lot on websites like Motley Fool. No one can teach you how to invest in the limited space on this website. You're far more likely to succeed in investing if you know what you're doing. Otherwise, you're relying on dumb luck. Knowledge is the key to successful. Good luck!
4. Investing in the stock market should be done with money that you can afford to lose. Do some basic research and learn about investing before you hand over your money to anyone. Learn the basics of investing and the safe way to invest your money so that you get to keep it. lol There is a link below that will get you started.