SERIOUS TIPS! ! ! $1,000 and the Stock Market

**Baby Boy** · 05-03-06, 12:16 PM

In the simulation world, its all fun and games but when your actually investing your REAL hard earned money you get skeptical.

Well, due to a deal closure my dad is having, he is going to split $1,000 between me and my brother. I plan to use my $1,000 --- now I was going to save and invest in my apartment future but now I'm thinking, what if its all gone. That's where I started thinking about stock market.

I need some SERIOUS SERIOUS information, where can I go to and where can I find to invest some of my money into stock (not all of it, I don't want to risk it all so I have to also find me a low-investing broker possibly.) If it comes to me having to throw the $1,000 in I'll take a SMALL CHANCE on it.

But I don't always want to have to rely on Jim Cramer and Gorilla Stocks... so please please please, everybody lead me in a good direction.

Super Mod · 05-03-06, 12:21 PM

I would recommend that you hold on to the $1,000 and use it for your apartment or something else. You don't normally want to enter the stock market with as little as $1,000. You typically want to buy 100 shares of a company and $1,000 will not even come close to that on most stocks. Have you thought about possibly getting a 5 year bond?

**Baby Boy** · 05-03-06, 12:49 PM

Call me dumb but I'm not the brightest, what is a 5 year bond?

Super Mod · 05-03-06, 01:17 PM

Quote:

Originally Posted by Baby Boy

Call me dumb but I'm not the brightest, what is a 5 year bond?

Here's a defintion of a bond:

Quote:

bond, in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years. Security is usually pledged against a bond; unsecured bonds are regarded as a long-term obligation on the capital of the issuing body. Some bonds are convertible upon maturity into the stock of the issuing company. One method used to retire bonds is the sinking fund; in such a case the issuing body buys back some of its bonds each year and holds them itself, applying the interest to the fund. The entire bond issue, most of which the firm has already acquired, is then retired on maturity. In the case of serial bonds, part of the issue is called in and paid for in full each year. Bonds were sold by the U.S. government to finance both World Wars and are still an important money-raising device. Government bonds are backed by the full faith and credit of the government issuing them, including its taxing power, and sometimes also by specifically designated security. Bonds are usually bought by those wishing conservative investment. A junk bond has a risky credit rating because it is issued by companies without an established earnings history or with a questionable credit history. Junk bonds have increasingly been used to help finance the purchase of companies, especially in leveraged buyouts.

Basically, you are loaning the government money and in turn are getting a fixed rate return over a number of years. It's the safest investing there is. I'm sure you can find better information than above, but it's a start.

Vi5 · 05-03-06, 01:36 PM

Yeh $1000 is a tiny amount to play with in the stock market, it would only be worth doing it if you were investing with your dad (or someone else) who is buying a serious amount.

Over here we have premium bonds and if you have something like that they would probably be your best bet.

SophMedia · 05-03-06, 01:40 PM

Quote:

Originally Posted by Baby Boy

In the simulation world, its all fun and games but when your actually investing your REAL hard earned money you get skeptical.

Well, due to a deal closure my dad is having, he is going to split $1,000 between me and my brother. I plan to use my $1,000 --- now I was going to save and invest in my apartment future but now I'm thinking, what if its all gone. That's where I started thinking about stock market.

I need some SERIOUS SERIOUS information, where can I go to and where can I find to invest some of my money into stock (not all of it, I don't want to risk it all so I have to also find me a low-investing broker possibly.) If it comes to me having to throw the $1,000 in I'll take a SMALL CHANCE on it.

But I don't always want to have to rely on Jim Cramer and Gorilla Stocks... so please please please, everybody lead me in a good direction.

Put it in the bank, it will do more for you

.

But no joke, like Spencer said, it's not worth it. Throw it in a bond or a CD (not sure what the going rate is on a CD, but the bond may be better return wise) if you want to "invest" it. Or throw it at a tax lien

.

redrory · 05-03-06, 03:35 PM

IMO: Why waste your time in the stock market.
Use that $1,000 and fund some of your businesses which you have been talking about.

**Baby Boy** · 05-03-06, 04:45 PM

I would but what if its a waste of money and I don't get another chance, then that means I just lost all of my mmoney... plus I need some money to start my personal life so I may use it forgetting an apartment.

My reason why I think I'll fail... after buying an SSL certificate and getting my products ($1,000 is only worth soooooo much) it'll be a small store, which is like I said, a waste of $1,000.

**Max** · 05-03-06, 06:22 PM

Quote:

Originally Posted by SophMedia

Put it in the bank, it will do more for you

.

But no joke, like Spencer said, it's not worth it. Throw it in a bond or a CD (not sure what the going rate is on a CD, but the bond may be better return wise) if you want to "invest" it. Or throw it at a tax lien

.

I agree. I would never bother with a bond.

Super Mod · 05-03-06, 06:35 PM

Quote:

Originally Posted by Max

I agree. I would never bother with a bond.

There are times when bonds are good. For instance, if you have a lot of extra money and do not want the risks of the stock market. Furthermore, many peopel choose to at least invest a portion of their money into bonds to ensure that they'll get at least some return on their money. It's a lot better than just keeping it in your bank acocunt.