Stock/Investment Question?

If you want to start purchasing individual stocks look at DRIP's. Dividend Reinvestment Programs.

All or most major corporations offer them. You buy stock directly from the company with a minimal admin. fee. Usually minimum investment is $50.00. Dividends are used to purchase more stock.

Pick a few companies and check their corporate websites for information.

I started a DRIP with Mobil oil a few years back before they were taken over by Exxon. Used to purchase about $100 worth of stock a month. Shares racked up. A few splits along the way.

Then Exxon came along and bought Mobil, offered 3 shares of Exxon for 2 shares of Mobil.

Now I have an Exxon drip and the shares are building up and the share price is increasing.

It's basically painless.

If you want mutual funds you will basically have to go with a broker which will have higher fees.

Hi Francois..

It is not easy for answering your question. USD 1000 is too small if you want to start investing in stocks..I mean, you need relatively long time to, say, make it USD 2000.

But, yes, the risk at stocks is low enough as long as you buy the good stocks from well-known reputable companies.

If you feel that you are an aggressive investor, this way will not satisfy you at all.

The best is using leverage to your capital, but this leverages are allowed in derivatives such as Options, Forex and Commodity. You are not going to buy the underlyings (stocks, currencies and rela commodities), but "the contracts".

But, this way contains high risk-reward...and you must prepare some serious works before deciding to do so.

It's up to you, but it is very good to start thinking about investments even though we've only had small money...

Wishing your success choices...

SIG

http://foropts.webs.com/ (this is my trial website)

The above answer is correct. I would suggest using sharebuilder.com. They do not require minimum deposits. You can build your portfolio from the ground up without having to risk a ton of your money. They're a low and they are very reputable as they are owned by ING Direct.

The firms like Reliance Capital, Infosis applied sciences,BHEL and so forth are items shares. If you're invested in first time,it's larger to put money into mutual budget. Because hazard will also be different.

3,000 is a perfect start...increase the amount as you get more comfortable.

Many online brokerages like zecco.com & Sharebuilder.com have no min account bal.

I would say do a little homework and use about 2,000-3,000 to begin and buy around 5 stocks

Each brokerage firm has their own minimum amounts to setup an account. Obviously the more capital you have the better.