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