| If you are a first time investor you are no doubt | | | | when you can buy direct. |
| wondering what the best investment vehicles to | | | | Use a DRIP program. If the company you are |
| get involved with are. There are many to choose | | | | interested in does not have a direct stock |
| from including stocks, bond, and mutual funds. This | | | | purchase plan, you may be able to go for their |
| article will focus on stocks and how to invest in | | | | dividend reinvestment plan (DRIP), if they have |
| them. | | | | one available. This is a great tool for growing your |
| Before you can invest in stocks you have to | | | | portfolio but you must own at least one share of |
| understand what they are. Stocks are paper | | | | the company before you can enroll. |
| assets companies use to raise money for many | | | | Buy through a specialized service. When you are |
| different purposes. If you purchase stock, you | | | | ready to buy stocks, there are companies that |
| become part owner of that company. | | | | are willing to sell you stocks on an individual basis. |
| In order for a company to sell stocks they have | | | | Instead of buying a large amount of stocks, just |
| to be registered and given a ticker symbol. This is | | | | go for one or a few initially. Then you can buy |
| an identification tag for a stock. By this symbol, | | | | more later. |
| people will know the company and stock. | | | | If you rather buy stocks through a broker, you |
| Companies sell different kinds of stocks including | | | | must realize that you will have to pay a |
| blue chip and penny stocks. Blue chips stocks are | | | | commission. This is a consequence of using a |
| the best and are considered the safest because | | | | broker. If you don't want to deal in stocks |
| the companies the stocks represent are financially | | | | directly, dealing with a broker is the best method. |
| secure. These are the type of stocks that | | | | Here are steps you can take to buy from a |
| guaranteed to pay dividends. | | | | broker: |
| When a company does its financials at the end of | | | | New accounts require a deposit. If you are new |
| the quarter or year, if the company made a | | | | to buy stocks and use a broker, you will need to |
| profit, it determines whether to pay a certain | | | | open an account and deposit at least $500 to |
| amount to stockholders. This money the | | | | $1000. |
| company pays out is known as a dividend. | | | | Use a discount broker. A discount broker deals |
| When investing in stocks there are certain things | | | | with self-directed investors. With them, you do all |
| you need to know. If you do not go through a | | | | the work; they just buy and sell for you. Your |
| broker you can invest in a company by using | | | | commission with them could be anywhere from |
| three different methods. These methods are: | | | | $8 to $30 dollars. |
| The company's direct stock purchase plan. There | | | | Stocks are not that hard an investment vehicle. |
| are a number of companies that offer direct | | | | You just have to know the players and how to |
| stock purchase plans. Why buy through a broker | | | | play the game. |