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.
The first step is to decide if you would like to manage your account–actively yourself or with a more hands-off approach and have someone else handle it.
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.
Do you enjoy researching? Do you have the time to commit to managing your account? Do you keep up-to-date with different companies and their operations? Do you like crunching numbers?
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.
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.