Jan
im only 16 but i wanna know if what i think it is is right
so when you invest in stocks , just say you invest in stocks for a restaurant with five other people do you get 1/5 of the profit of that restaurant. So thats what i believe it is can you tell me if that is right, i have been buying and selling thing since i was ten and i have made about 10,000 dollars so can i invest this into a stock and make a profit out of it
Answer:
What you described is more of a profit sharing plan. Buying stocks has a lot more to do with supply and demand than profits, although profits are one factor that influence the supply and demand of the stock. It's awesome to see you have an interest at 16, you're definitely ahead of the curve by a few years. I strongly suggest you visit Investopedia, it's a website devoted to investor education. Make sure to check out some of the tutorials the site has to offer, it will help you understand what stocks are, and how you make money by investing in them. I have also included a link to The UpDown, a website which allows you to invest a virtual portfolio, initially worth $1,000,000. This site is a great way for you to practice before you jump into the real thing to make sure you understand how the market works. Best of all, the site pays you real money should your virtual portfolio outperform the market. Lastly, I have included a link to Yahoo! Finance, which provides much of the research information you will need. The site works great as a complement to Investopedia. These three sites will allow you to learn how the stock market works, while virtually investing, with no risk, on The UpDown in companies that you researched on Yahoo! Finance using some strategies found on Investopedia.
If you are looking to make a cash profit, I would suggest spending some time learning about dividends, namely stocks with high dividend payouts, as this is about as close to what you described (the restaurant example) as you get in the stock market.
Best of luck!
Brendan Prewitt
President, New York Capital Investment Group LLC
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