How To Invest in Stocks: A Beginner’s Guide

For people new to investing, understanding how to invest in stocks can feel intimidating. Typical questions beginners may have are where to go and how much money to start.  However, there is often more than just the mechanics of investing in stocks. Investors must also understand their financial goals before investing. 

The following is a beginner’s guide to stock market investing. This article covers everything from setting up an account to investing money in stocks.

How To Invest in Stocks: A Beginner’s Guide 

1. Financial Advisor  Advisors are available at banks and other financial institutions to help manage everything for investors, from opening accounts to making stock picks based on the investor’s investment goals. 

How Do You Open an Investment Account?

2. Manage Independently  These are just a few questions investors should ask themselves when deciding whether to self-manage or hire somebody. Investors that choose to invest independently can open a brokerage account online.

Investors can open a regular investment account, but the income would be taxable. A taxable income account is more suitable for people who already have a separate account for retirement savings. 

What type of investment account?

Types of Investment Stocks are also known as equity investments. When purchasing an individual stock, the investor then owns shares of that company. The price of a stock can fluctuate throughout the day as shares are constantly bought and sold on the stock market.

Mutual funds are professionally managed funds that use money from investors to purchase a large pool of investments like individual stocks, bonds, and money market instruments. However, it is possible to buy mutual funds that are equity funds, meaning they only invest in stocks. 

1. Mutual fund

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