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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 broker.
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 Morrissey’s 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.
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. Click here to get to Stocks in Cyberspace.