5189 Shares

Investing in stocks - let it sit?

Investing in stocks - let it sit? Topic: Journal of newspaper research companies
June 24, 2019 / By Brant
Question: I have $500 to invest. I wanted to invest it into a company that is cheap right now, but I KNOW will go back up in the future. Is it wise to put the $500 into the company (each share is about 70 so I would be getting 6 or 7 shares) and then let it sit with the dividends reinvesting? I dont need to make quick money. I can let it sit for years upon years, but I want to have a nice little pocket of money when I'm older (I'm 22). I'm new to this so any and ALL opinions/comments/concerns are welcome.
Best Answer

Best Answers: Investing in stocks - let it sit?

Adrian Adrian | 1 day ago
One of the most important rules in investing is diversify your portfolio. You're putting all your nest egg into one company... Very risky. And how do you KNOW that it will go up? Many people who invested in ENRON and/or tech startups during the tech boom said they just KNOW the stock will go up. So, do some research, pick about 10 to 20 companies that have solid finances (you'll have to know some accounting stuff to do this - You must know how to at least read income statement, and statement of cash flow) and a good business model. With your $500, you can't really diversify. I suggest you save up more money and educate yourself a little more about the individual companies you want to invest in and the market in general. Read newspapers such as Financial Times and Wall Street Journal.
👍 190 | 👎 1
Did you like the answer? Investing in stocks - let it sit? Share with your friends

We found more questions related to the topic: Journal of newspaper research companies


Adrian Originally Answered: I'm 14, and I want to start investing. How old do you have to be to get a loan?
May need a cosigner for the loan. Not many banks go around throwing money at 14 year olds with no established credit to gamble with on investments. Also it helps to know what type of investing you will be doing. Best bet: create a business plan and look for an investor and go in halves with them or show your parents and do it through them.
Adrian Originally Answered: I'm 14, and I want to start investing. How old do you have to be to get a loan?
New industry mortgage will also be availed in opposition to any estate of the borrower. A estate with massive fairness makes it possible for larger mortgage quantity. Secured new industry loans bring decreased curiosity charges. The compensation tenure is from five-30 years, enabling this mortgage to be repaid very simply. But if there is not any estate or don't wish to incur danger with estate, there may be an choice of unsecured new industry loans. Unsecured new industry loans don't require collateral and therefore there is not any danger to the borrower. However those loans have larger curiosity price and smaller mortgage quantity with shorter compensation tenure. The borrower’s well credit score historical past and fiscal status is the one criterion in sanctioning the unsecured mortgage.
Adrian Originally Answered: I'm 14, and I want to start investing. How old do you have to be to get a loan?
The first general rule is YOU DO NOT BORROW MONEY TO INVEST. Secondly, you could only get casual loans from family and friends that trust you. [You need to be of legal age to sign a contract to borrow money, get a checking account, get a mortgage, buy anything on contract,,,,,] { Why are you concerned about paying off a mortgage? }
Adrian Originally Answered: I'm 14, and I want to start investing. How old do you have to be to get a loan?
Not sure about age, but I assume you have no steady job or collateral. Even if you could get a costodial loan, I would ask your parents if you could borrow $100 or how ever much from them instead.

Adrian Originally Answered: How Reliable are "Investing Guru" sites such as www.quantummomentum.com?
I find that some of these sites can be a valuable resource and others are just terrible. Taking a look at the one you mentioned it looks like it has alot of content and I agree with most of the articles. But don't blindly follow their advice do some research of your own. Yahoo's finance section is a great resource.
Adrian Originally Answered: How Reliable are "Investing Guru" sites such as www.quantummomentum.com?
They are just opinions of people. It doesn't mean that they are right. You can use it as a base to see what people are suggesting, then do your own homework and really see how it looks. You're better off doing it yourself then just picking something randomly theres no proof that these people are defintly right, and it's your money that you're risking.

If you have your own answer to the question journal of newspaper research companies, then you can write your own version, using the form below for an extended answer.