How Much Money Do You Need to Get Started in Stocks?

The Small Investor

If you don’t want to start a business, investing is the key to growing wealthy.  And equities are a great way to invest because they are one of the few investments that will outpace require inflation and require almost no maintenance.  Your shares of IBM won’t call at 2 AM and complain that the heat is out, and you won’t pay taxes until you sell the shares (unless your investments pay a dividend), so your money can compound.

So what is the best way to start investing in stocks, and how much money is needed?  There are two ways to invest in equities – by purchasing individual stocks or by purchasing mutual funds.

Investing in individual stocks is the more risky option since you are opening yourself up to specific company risk.  The company you select may have a bad quarter or bad year.  On the other hand, if you select well…

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