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After researching a "story" for
companies, picking stocks, and practicing with a paper portfolio, you should consider
buying real shares of stock. Buying your first shares of stock is a thrill you will never
forget no matter how many shares of stocks you own in the future.
As a young investor, you have time to
invest, but you may not have the cash. There are ways you can own one share or a few
shares of stock without a lot of money. Also, you may or may not be able to afford a
stockbroker to buy or own stock as adults do. Below is a way you can get stock without a
1. Contact companies that offer the
direct investment plan. As we discussed previously, some of these companies will sell one
share of stock directly. For more information, contact the Direct Investor (900-225-8585)
Jersey City, NJ, which collects names and phone numbers of companies that sell stock
directly to the public.
2. If your parents or grandparents own
stocks, they can get you started by transferring one share or a few shares to you. Most of
the stockbrokers will allow such transferring without a commission charge.
3. If your parents are members of an
investment club, you can buy shares directly from the National Association of
Investors Corporation (NAIC), which lets you buy one share of stock from a
limited number of companies such as McDonalds, Disney, Kelloggs, and Quaker Oats. When you visit their
Web site, make sure you check out the NAIC for student investment clubs, Ms. Joan
Morrisseys seventh grade investment class, and the twelve steps to successfully
start a student investment club.
4. Buy stocks through a dividend
reinvestment plan (DRIP).
To use this method, first you have to own the stock. Second, the company in which you
invested has to pay a dividend. Third, you can reinvest the dividend to buy more shares of
the company without a brokers commission.
5. You can open an account as a minor with an online brokerage firm such as E*Trade. There is no minimum amount you have to
deposit into the account. (adult requires a minimum of $1,000 to open an account.)
You can buy as little as one shares of stock for $14.95 commissions (fees.) You can also
buy up to 1,000 shares of stock for the same fee.
6. You can also get started investing as
little as $50 in mutual funds. The Strong
Funds offers a $50 a month investing program that
directly withdraw money from your checking or savings account. This is a suitable
plan for parents or grandparents to set up an educational fund for their young children.
more information about direct investing click here
As a proud stock owner, you just joined
the list of more than 50 million Americans, one out of every five, who own stock. Who
knows, you may well be the future Warren
Buffett in the making.
for kid-friendly investment ideas.
Stock Learning Center
| Stockbrokers | Stocks in Cyberspace |
Glossary | Home