| When you tell people that you're about to
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| | grey-bearded know-it-all that you pay to
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| start buying stocks, you're likely to
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| | make you feel bad about yourself , then
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| encounter some latent hostility.
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| | you're in for good news, because you
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| Most people wish that they too were
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| | don't need one! The type of broker that
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| buying stocks, but they're afraid to get
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| | you need isn't a human being at all -
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| started or ashamed that they don't
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| | Ameritrade is a broker, for example.
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| understand the markets.
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| | All you need to begin buying stocks is an
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| Therefore, they try to discourage others
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| | account with an online broker. Don't
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| from purchasing stocks - it's the crabs
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| | listen to the naysayers or the Edward
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| in a bucket parable come to life. Often,
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| | Jones commercials - you can do this on
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| these naysayers will dispense popular
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| | your own!
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| (but untrue) myths about buying stocks.
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| | #3 - Buying Stocks is for Suckers
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| In this article, those myths are
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| | This is one of the pettiest, most
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| dispelled, one-by-one.
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| | inaccurate myths of all, but in the wake
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| #1 - Buying Stocks is Only for Rich
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| | of Enron and other Wall Street scandals,
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| People
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| | it's also one of the most pervasive. It's
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| Sadly, there was a time when this was
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| | based on the absurd notion that stocks
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| mostly true. Way back when, the
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| | are nothing more than pieces of paper.
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| commission charged for purchasing stocks
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| | Stocks are not just pieces of paper. They
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| was more than $100. Thanks to discount
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| | represent actual ownership in a real,
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| stock brokers like Charles Schwab and the
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| | live business. When you own stock, you
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| advent of the internet, buying stocks has
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| | own a fractional share of every penny
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| never been less expensive.
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| | that the company earns and every dollar
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| For one, technology has reduced the
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| | that's in its bank account.
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| spread between the bid and ask prices.
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| | You even own its property, plant, and
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| This means that the prices you see
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| | equipment! Of course, you are just one of
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| scrolling across the TV screen are very
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| | many owners, and your share is
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| close to the prices you will pay when
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| | undoubtedly very small - but you are an
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| purchasing stocks - off by only a few
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| | owner, and this does matter.
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| cents or so.
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| | Even if the stock falls on hard times, a
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| Secondly, commissions are way down.
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| | bigger company might come in and buy the
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| Buying stocks now costs as little as $7
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| | company in full - usually at a healthy
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| per trade through online brokers like
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| | premium. When they buy the company, who
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| FirstTrade and ScottTrade. Purchasing
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| | do they buy it from? From you, and all
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| stocks through E-Trade and Ameritrade
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| | the other shareholders like you.
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| costs less than $10.
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| | The Truth - Purchasing Stocks is
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| But if you're really on a budget, you
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| | Inexpensive, Easy, and It's for Winners
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| should be buying stocks through
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| | Don't listen to the naysayers. You know
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| Sharebuilder, which allows you to pool
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| | that buying stocks is in your best
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| your money with other investors, and add
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| | interests, and you've probably been
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| fractional shares to your account for as
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| | putting it off for far too long already.
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| little as $1 per investment!
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| | Give yourself a basic education by
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| #2 - You Need a Broker to Begin Buying
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| | reviewing articles at informative
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| Stocks
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| | websites like this one, and then get out
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| For this myth, the naysayers exploit the
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| | there and start purchasing stocks.
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| popular understanding of what a "broker"
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| | After all, there's no better education
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| is. Yes, you do need a broker in order to
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| | than the one you'll receive when your
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| begin purchasing stocks.
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| | real money is on the line.
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| But if you think a stock broker is a
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|
