Best place to amenable custodial description for 1 time purchase of stock (small $) for minor?
My son, just turning 10, wishes to use $30 of his birthday money to purchase stock in a persuaded company. It will have to be a custodial article, as he is a minor, will sit untouched at least 8 years (till he's 18 and gain control, I hope longer!). I offered to pay the brokerage fees-where is the cheapest place to do so? I don't want to spend $20 to oblige him purchase $30 worth of stock. It looks like sharebuilder does them for $4- if you budge on 'automatic deposit', which we're not interested in right presently. So...cheapest place for one time small $ stock purchase for a minor? TIA!Answers: I've been using Sharebuilder for various years now. I resembling that you can buy and hold the way you want to do for your son, and they don't charge you per annum fees and dividend reinvestment is free. The automatic deposit you write about is really an automatic investment, which costs $4, but take place sometime on the Tuesday you specify. This means you can't specify the buy price for the $4 trades, but you can specify whether you want to buy one-time one and only or every month or every week.
You can do real-time trades at $9.95 per trade, this allows you more control over what you want to pay.
I would rethink buying stock beside only $30 if it's intended for financial gain. Even at $4 a trade, you lose 13% of your investment money in trading costs, but it's not other about financial gain. In this luggage, I think it's more in the order of learning going on for investments and financial markets and the power of time when it comes to investments.
dont bother investing 30 bucks contained by stock
get him a mound account
I own never heard of any brokerage that would hold such a small sum of money. Best bet is for the kid to put the money in a funds account for presently. Have him STUDY the stock market. Have him undo an online portfolio for free here:
http://finance.yahoo.com/
Tell him if he will put his gift money contained by there, allowance, anything he can earn, that when he hits $500 surrounded by the account he can unequivocal up an account at Scottrade and you will do his directives IF he is also doing well near his online portfolio.
The brokerage business is highly regulated and it costs money for them to own accounts. It's not worth it to them to try to open an statement to sell a couple shares of stock.
If you do this, and you hold extra cash, later one of the best things you can do is open a DRIP Plan.
Go to : low-cost-stock-recommendations
.com
Click on the "DRIP's" Button on the Navigation Bar
These powerful investment plans are seldom talk about because brokers receive very little money when they suggest them. Yet, they own proven to be one of the best, if not the best, long-term strategy on Wall Street.
They are ultimate for small investors, as well as big investors. They are undisruptive and allow you to not care something like whether the market is going up or down. They are a must for any serious investor.
If you wish you are interested in DRIP Plans, click on the public notice on the same page "$4 to purchase stocks". This will answer your subsequent question, which is, How do I find started? and what is the least expensive process to get started?
I strongly recommend looking into it. They are great plans.
Good Luck
If I invest 20,000 within an description that earn 9% interest compounded monthly what is the adjectives?
value within three years?Answers: $26,172.91
The calculation is as follows:
$20,000*[1+(0.09/12)]^(3*12)
I hope this help.
Best of luck!
Brendan Prewitt
from what i can remember to figure this out you do this:
20000(1+9/12/100)^3*12<edit>
=26172.90742$
<edit>
i remembered :P
If you enjoy a financial calculator:
N = 12mo x 3yrs = 36
I/Y = 9% / 12mo = .75%
PV = 20,000
PMT = 0
Compute FV
FV = 26,172.91
Better put your money in Belarus ridge. You will get a 13% rate of interest near NO RISK AT ALL. All deposits are state protected.
Put $20,000 and get backbone $28,857.94 in 3 years ( interest compounded yearly). No fees.
P.S. Braingamer, if you don't know such variant it doesn't mean they do not exist. :-P
So what is exactly going on surrounded by the stock open market?
i've got a project to do for friday going on for the stock market. i've get all the idea about the stock marketplace but i havent a clue what is going on in the bazaar! all i know is that within is a feared recession and the US are decreasing the interest rates...what i would approaching to know is:why does decreasing interest rates affect the stock market?
why is share prices increasing anyway?
how will this affect the relations who have no shares?
Answers: Basically when interest rates are illustrious, investors tend to take the money out of the market and put it in Certificates of Deposit, Savings Accounts, and other accounts that are artificial by interest rates. Those accounts are safer but on average pay process less return than the stock flea market does. When interest rates go down, those same accounts are not worth it so investors move their money pay for to the stock markets. If you don't invest within either, next obviously will not affect you. When the majority of investors embezzle the money out of the markets, next the markets shift down and so do share prices. When investors put the money back surrounded by the markets, after stocks go up.
The U.S. is contained by a recession now...the Gov't won't concede it yet.
The Gov't lowersd interest rates to incorporate liquidity (money) to the economy.
Theoretically, it is easier to borrow and spend in a minute, but lending rules enjoy tightened, and people cannot refinance their sub prime mortgages, so they are losing their homes, lend institutions, sold off packages of mortgages to put off funds and insurance companies, guaranteed the mortgages, and the rating services ,rated the mortgage packages AAA, which they be not.
So, The mortgages are being default, the hedge funds and investment back are losing money because no-one will re-buy these mortgage packages, the insurance companies (monolines) leverages their exposure and can not cover the losses, We are talking of Trillions of dollars of derivatives base on mortgages that are now suspect.
Lowering interest rates give more money to investors that can qualify and they buy stocks beleiving the recession will be mild, so enconomy is dropping but stocks are going up.
The normal creature will be affected by superior inflation in the adjectives and possible (though not likely) complete destruction of the world's monetary system (which is based on trust of dissertation money only)
* The stock market is currently within a technical phase agreed as a "correction" meaning the trend is for lower prices.
* Microsoft finally announced a bit for Yahoo! after much speculation of such a settlement.
* most homebuilders and housing CEO's continue to see a slump within the housing market and current construction through 2008.
* the US Jobs market is unconvincing, shedding 17,000 jobs within January, the first drop since 2003.
* Energy prices remain high and Exxon posted its biggest twelve-monthly gain in 2007, earn almost 12 billion in the ultimate quarter alone.
* Some leading stocks are:
(ISRG) Intuitive Surgical
(PCLN) Priceline.com
(POT) Potash Corp.
(BUCY) Bucyrus International
* The best performing sector are:
Chemicals
Energy
Metals
Machinery
Agriculture
* The worst performing sectors are:
Financials
Homebuilders
Telecommunications
Trucking
Specialty steel
footnote: the United States reduction is NOT offically in a recession, a recession is defined as two quaters (back to back) of distrustful growth.