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Thread: Etrading stocks

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    Senior Member anabella's Avatar
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    Default Etrading stocks

    I am looking to buy stock in a company with a very low price right now. My initial investment is between 250 and 500 dollars (for 100 or 200 shares). Since I'm investing a small amount of money, and I don't currently have an investment account with any company, what's the best way for me to purchase? Should I go to Etrade or td ameritrade where I can get a 9.99 trade, or is there a better option?

    Thanks in advance.

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    God/dess Deogol's Avatar
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    Default Re: Etrading stocks

    A lot of places require a minimum amount of money to begin with, usually around 3K.

    You could set up an IRA with a mutual fund and stuff it away out there that way.

    Otherwise, gotta save your cookies.

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    Banned Katrine's Avatar
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    Default Re: Etrading stocks

    Nah. TD Ameritrade has $10 trades and no custodial fee.If she wants to take a gamble with this company, I don't see the big deal. At worst, she has lost $500. That's a night in Vegas if you're into that kind of thing.

    Now....tell us about this great company and I can run some fundamentals.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

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    Senior Member anabella's Avatar
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    Default Re: Etrading stocks

    Actually it's a company that is doing poorly and might even get bought out soon. The price is so low that it's only a 500 dollar gamble, so I figured it would be a good way to start. If they did get bought out, would my stocks be rolled into the new company, or would I have to sell? I'm so clueless about these things, good thing it's not a lot of money.

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    God/dess Deogol's Avatar
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    Default Re: Etrading stocks

    Quote Originally Posted by anabella View Post
    Actually it's a company that is doing poorly and might even get bought out soon. The price is so low that it's only a 500 dollar gamble, so I figured it would be a good way to start. If they did get bought out, would my stocks be rolled into the new company, or would I have to sell? I'm so clueless about these things, good thing it's not a lot of money.
    Depends on the deal. Sometimes they do a stock swap, sometimes they write a check.

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    Banned Katrine's Avatar
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    Default Re: Etrading stocks

    Quote Originally Posted by anabella View Post
    Actually it's a company that is doing poorly and might even get bought out soon. The price is so low that it's only a 500 dollar gamble, so I figured it would be a good way to start. If they did get bought out, would my stocks be rolled into the new company, or would I have to sell? I'm so clueless about these things, good thing it's not a lot of money.
    Hmmmm, the "good way to start" part concerns me. Its not a good way to start investing at all. Its a good way to gamble. Personally, I'd rather spend $500 on a nice dinner and visit to the strip club.

    Why have you decided to get into the market this way?

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

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    Default Re: Etrading stocks

    I use TD for us based markets, not dissapointed in them.

    We need way more data on your situation, but starting out investing in penny stocks is one way people get started, but not usually a worthwhile one.
    You can't love something you think is flawless - me


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    Senior Member anabella's Avatar
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    Default Re: Etrading stocks

    It's actually the company that I work for, and I think it might give me extra motivation to work hard if I owned stock. I realize it's a total gamble, but for me, I'd rather buy some stocks then go buy a couple coach purses or something. It's a learning experience too, so if I want to buy less risky stocks later, I'll know a little about it.

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    Default Re: Etrading stocks

    Both are perfectly fine, cheap and easy to use. Although in my living memory I have never heard of a bank run, there were people who moved their money out of etrade because one analyst mentioned there might be a bank run on etrade. All accounts are FDIC insured to $100,000 plus bank's insurance and the last time a similar type of bank went insolvent they sold their accounts. It's very, very easy to open an online account, just go to the ameritrade website. You can try opening an IRA for the tax savings, but of course suppose to be for retirement.

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    Banned Katrine's Avatar
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    Default Re: Etrading stocks

    Quote Originally Posted by space_Cadet_28 View Post
    Both are perfectly fine, cheap and easy to use. Although in my living memory I have never heard of a bank run, there were people who moved their money out of etrade because one analyst mentioned there might be a bank run on etrade. All accounts are FDIC insured to $100,000 plus bank's insurance and the last time a similar type of bank went insolvent they sold their accounts. It's very, very easy to open an online account, just go to the ameritrade website. You can try opening an IRA for the tax savings, but of course suppose to be for retirement.
    Investments are insured by SIPC. Cash is FDIC.

    She could do a Roth or T-IRA. But if the company hits the jackpot, she won't be able cash out on the gains for years.

    Also, you should get the company to grant the employees some stock options to encourage you to "work harder." I'm suprised they don't do that already. Its a common approach, the 'golden handcuffs'.

    If you're in Texas, I can set it up for you.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

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    Default Re: Etrading stocks

    Quote Originally Posted by anabella View Post
    It's actually the company that I work for, and I think it might give me extra motivation to work hard if I owned stock. I realize it's a total gamble, but for me, I'd rather buy some stocks then go buy a couple coach purses or something. It's a learning experience too, so if I want to buy less risky stocks later, I'll know a little about it.


    Negotiate Stock Options with your employer. Your Boss and his/her Boss and his/her Boss get options to work harder without investing their own money. You should be no different.

    Some companies are more willing to give away stock options than cash. So, it may be easy for you to negotiate. Your boss may actually be impressed with your commitment and may help you on this.

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    Senior Member anabella's Avatar
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    Default Re: Etrading stocks

    Thanks for the advice from everyone. Unfortunately, I just started working for this company again (was away for two years, dancing) and it'll be at least a couple of months before I qualify to purchase stock options. I opened a tdameritrade account, unfortunately it takes a couple of days to transfer funds so I have to wait for the money to arrive, then I'll be on my way.

    I'm in Ohio, but thanks for the offer Katrine.

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    Default Re: Etrading stocks

    Quote Originally Posted by anabella View Post
    Thanks for the advice from everyone. Unfortunately, I just started working for this company again (was away for two years, dancing) and it'll be at least a couple of months before I qualify to purchase stock options. I opened a tdameritrade account, unfortunately it takes a couple of days to transfer funds so I have to wait for the money to arrive, then I'll be on my way.

    I'm in Ohio, but thanks for the offer Katrine.
    If you are getting Stock options in a couple of months, why bother investing your own money in that stock again. Now your Income, investment, stock options are all tied to 'one' single asset

    You should think about diversification. Also, it is always a good idea to invest in a basket of assets when you begin and only when you understand things start investing in single assets. The biggest mistake all investors make is they start with single asset classes, and either
    i) They get lucky and continue to pour lots of money in that single class till the bubble bursts
    ii) They get unlucky and swear off that investment the rest of their life when there may be plenty of opportunities present

    No more than 10% (I would even say 5%) of your Net Worth should be tied to a single asset.

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    Banned Katrine's Avatar
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    Default Re: Etrading stocks

    Quote Originally Posted by xanfiles1 View Post
    No more than 10% (I would even say 5%) of your Net Worth should be tied to a single asset.
    Financial professionals say 15-20%, depending on many other factors. If you are getting options at a huge discount, the vesting schedule, ESOP discounts, other assets already working for you, etc, etc.....

    I see what you are saying xan, as usual. And again, as usual, there is no cookie cutter answer.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

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    Default Re: Etrading stocks

    Quote Originally Posted by Katrine View Post
    Financial professionals say 15-20%, depending on many other factors. If you are getting options at a huge discount, the vesting schedule, ESOP discounts, other assets already working for you, etc, etc.....

    I see what you are saying xan, as usual. And again, as usual, there is no cookie cutter answer.
    I don't disagree with you. But as usual, a simple cookie cutter is a 1000 times better than nothing. What %age of members here do you think even implement the cookie cutter solution?

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