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Another common question people have is: What if I don’t have enough money to buy 1 share? Depending on the share price o...
16/12/2023

Another common question people have is: What if I don’t have enough money to buy 1 share?

Depending on the share price of a stock you want to buy, it can get pricey. There are shares at various price points.

There’s stocks you can buy for under $10, as well as $100 and even $1,000 per share.

Some brokerage firms allow you to buy fractional shares(a slice) of a stock as well.

Let’s say ACME company has shares available for $100. You only have $50 in your brokerage account to invest. You can buy a 1/2 share for $50.

This is one way that you can slowly build your portfolio with the funds you have available to invest.

Remember: It’s not about the amount of money you have available to invest, but more so how consistently you invest.

As long as you stay consistent and invest continuously, your portfolio will steadily grow.

Let me know if you have any questions or if I can explain anything.

This is another common question people have. Do I have to keep a share for a certain amount of time? No there is no pred...
16/12/2023

This is another common question people have. Do I have to keep a share for a certain amount of time?

No there is no predetermined or required amount of time an investor needs to keep a share.

The choice is completely up to you.

You can sell it and have access to your funds in about: 1-3 business days depending on the type of security you are invested in.

Some equities and bond funds settle on the next business day after being sold.

Most stocks take 2 business days to settle into your account.

Meaning that you have a short waiting period in order to access your money.

It’s comparable to the timeframe to access funds in an online savings account.

Let me know if you have any questions or if I can explain anything.

Do I have to buy a certain number of shares? No there is no minimum amount to buy with stocks. There may be minimums for...
16/12/2023

Do I have to buy a certain number of shares?

No there is no minimum amount to buy with stocks. There may be minimums for mutual funds.

Since ETFs trade like stocks, they do not usually have a minimum amount needed to invest other than the cost of 1 share.

Most people assume that they have to buy a large quantity of shares and that they don’t have enough money to invest. That’s not true.

Let me know if you have any questions or if I can explain anything.

Do I get to choose how I receive my dividend? 🤔💯 YES!! You can make your selection in your brokerage account. You can se...
16/12/2023

Do I get to choose how I receive my dividend? 🤔

💯 YES!! You can make your selection in your brokerage account.

You can select it individually, meaning you can choose to reinvest some dividends with DRIP and receive a cash dividends with other assets in your portfolio. It is completely up to you to decide.

Let me know if you have any questions or if I can explain anything.

So does DRIP give me more in terms of dividends? No it does not. It gives you the same amount of dividends (money paid f...
16/12/2023

So does DRIP give me more in terms of dividends?

No it does not. It gives you the same amount of dividends (money paid for your shares), but it automatically buys you more shares of stock for the total amount of dividends they gave you.

So in the example above ⬆️, let’s say you will receive a $0.50 payout for every share you own. You own 10 shares, so that would mean that you would receive $5 in dividends. 💵

Since the total dividend received is the same price as a whole share of stock, that would buy you another share of that company’s stock.

So now next time you would receive dividends for 11 shares of stock, all without you having to buy any other shares yourself. 😏

Let me know if you have any questions or if I can explain anything.

DRIP is also known as a Dividend ReInvestment Program. When you opt into this, your dividends will automatically be paid...
16/12/2023

DRIP is also known as a Dividend ReInvestment Program.

When you opt into this, your dividends will automatically be paid to your brokerage accounts and automatically turn around and buy more shares of the same stock.

This is one option for your to receive your dividends.

You can always opt out of DRIP, and switch back to receiving a cash dividend. The choice is yours.

Let me know if you have any questions or if I can explain anything.

Ok so why would you want to receive your dividends in the form of stock? Let’s say you have a goal of owning 100 shares ...
16/12/2023

Ok so why would you want to receive your dividends in the form of stock?

Let’s say you have a goal of owning 100 shares of a particular stock.

Would you rather pay for those 100 shares out of your pocket? Or would you like that company to help you out in buying more shares automatically?

Depending on how many shares you own, you may have enough dividends to buy another whole share of that stock from the dividend the company is paying you. So instead of having 10 shares you now have 11 shares. Next time you’ll get dividends for 11 shares instead of 10.

This essentially puts your investments on auto pilot. You will receive your dividends on one day and the next day, your brokerage account will automatically turn around and purchase more stock with those dividends.

Let me know if you have any questions or if I can explain anything.

Ok so why would you want to receive your dividends in the form of stock? Let’s say you have a goal of owning 100 shares ...
16/12/2023

Ok so why would you want to receive your dividends in the form of stock?

Let’s say you have a goal of owning 100 shares of a particular stock.

Would you rather pay for those 100 shares out of your pocket? Or would you like that company to help you out in buying more shares automatically?

Depending on how many shares you own, you may have enough dividends to buy another whole share of that stock from the dividend the company is paying you. So instead of having 10 shares you now have 11 shares. Next time you’ll get dividends for 11 shares instead of 10.

This essentially puts your investments on auto pilot. You will receive your dividends on one day and the next day, your brokerage account will automatically turn around and purchase more stock with those dividends.

This will buy you more shares of stock without any money coming from you.

Let me know if you have any questions or if I can explain anything.

Ok so if I buy a share of stock, how do I receive the dividend? 🤔Companies will automatically pay you your dividend to y...
16/12/2023

Ok so if I buy a share of stock, how do I receive the dividend? 🤔

Companies will automatically pay you your dividend to your brokerage account.

Think of it this way: Just like you set up auto pay for your bills, where the bill is automatically debited on a specific date, dividends are automatically deposited into your brokerage account in reverse manner.

There is nothing specific you need to do on your end to receive your dividends.

The only thing you have to do is decide if you want to receive the dividend in the form of cash or stock?

Let me know if you have any questions or if I can explain anything.

What does appreciation mean? That’s simply when the price of an asset goes up in value. It is the opposite of depreciati...
16/12/2023

What does appreciation mean?

That’s simply when the price of an asset goes up in value. It is the opposite of depreciation.

Let’s say you buy a share for $10.
After a few months, the price of 1 share of that same stock is now $17 a share. That would mean that your shares appreciated $7 per share(or went up in value).

Let me know if you have any questions or if I can explain anything.

Let me know if you have any questions or if I can explain anything.

What exactly is a growth stock? A growth stock doesn’t pay a dividend. People buy growth stocks with the expectation tha...
16/12/2023

What exactly is a growth stock?

A growth stock doesn’t pay a dividend. People buy growth stocks with the expectation that they will appreciate, so that they can sell it later on down the road for a profit.

Growth stocks do not pay a regular dividend. You will not be receiving any continuous income from growth stocks.

People that are looking to double their money are usually drawn to buying growth stocks that they think have potential to double or triple their initial investment.

**Investing in the stock market is not a sure thing. All investments have an inherent risk attached to them. Please make sure you do your research before you invest your money into any investment.***

Let me know if you have any questions or if I can explain anything.

There are 2 types of stocks. Dividend stocks are stocks that pay a dividend on a regular basis. Companies that pay a div...
16/12/2023

There are 2 types of stocks.

Dividend stocks are stocks that pay a dividend on a regular basis. Companies that pay a dividend share their profits with their shareholders.

Growth stocks on the other hand grow in value per share but do not pay a regular dividends. These companies invest their profits back into their companies instead of distributing a dividend to their shareholders. Instead, the value of the stock climbs so that shareholders make a profit (hopefully) when they decide to sell their shares.

Let me know if you have any questions or if I can explain anything.

Next question: When will I get paid? Depending on the company, they may choose to pay either monthly or quarterly. There...
16/12/2023

Next question: When will I get paid?

Depending on the company, they may choose to pay either monthly or quarterly. There is no correlation between how often a dividend is paid and the amount is paid.

I will show you how you can tell when and how much a company pays out in dividends, before you buy any shares.

Company “A” can pay a monthly dividend of $0.25 and company “B” can pay a quarterly dividend of $0.75, the amount will balance out. In this case, neither one is better because they both end up paying the same amount over the course of a year.

Some people would prefer to get paid monthly if they are looking to use this money as a monthly income stipend.

Others who are focused on growing their portfolio and aren’t using currently using their dividends, might opt to invest in securities that distribute quarterly dividends.

Let me know if you have any questions or if I can explain anything.

When you open brokerage account, this will be one of the things you will need to set up under your preferences. Keep in ...
16/12/2023

When you open brokerage account, this will be one of the things you will need to set up under your preferences.

Keep in mind that voting is optional and you will still receive your dividends regardless.

Some people choose not to vote at first because they may be unsure of how or what they are going to be asked and that’s perfectly normal.

The more you learn about investing and what you’re investing in, the more you’ll understand and the easier it will be to understand what the company is voting on. They will also usually provide an explanation with all the material provided to you.

You can abstain from voting if you choose.

Let me know if you have any questions or if I can explain anything.

Company’s usually have an annual presentation for their shareholders. They will vote on measures and will receive input ...
16/12/2023

Company’s usually have an annual presentation for their shareholders. They will vote on measures and will receive input from their shareholders.

Nowadays you will receive an email from your brokerage company letting you know when the annual shareholders meeting will be held. They will let you know how you can vote (usually email/phone call/ in person)and when that deadline is to cast your vote.

Now you’re probably thinking: why should I vote?

Make your voice heard on critical issues like board elections, executive compensation, corporate actions, and policy changes. The outcome of the vote can affect the value of your shares.

Let me know if you have any questions or if I can explain anything for you.

Ok now that we know what a shareholder is, another term you might want to know is board of directors. What exactly is t...
16/12/2023

Ok now that we know what a shareholder is, another term you might want to know is board of directors. What exactly is that?

The board of directors is those members in charge of a company that are elected to the position by shareholders. The board of directors oversee management and make sure that the shareholders interests are being represented in whatever decisions the company makes. Companies want to make sure they keep their shareholders happy.

As long as the companies can make a profit, and pass that profit onto shareholders in the form of dividends.

Let me know if you have any questions or if I can explain anything.

shareholder. A shareholder is simply someone who owns shares in a particular company. Once YOU buy your first share of s...
16/12/2023

shareholder.

A shareholder is simply someone who owns shares in a particular company. Once YOU buy your first share of stock, YOU will become a shareholder.

Let me know if you have any questions or if I can explain anything.

A portfolio is simply what your collection of assets in your brokerage account is called.Let me know if you have any que...
16/12/2023

A portfolio is simply what your collection of assets in your brokerage account is called.

Let me know if you have any questions or if I can explain anything for you.

Now most people new to investing think they need to have a large sum of money up front to start investing. That’s not th...
16/12/2023

Now most people new to investing think they need to have a large sum of money up front to start investing. That’s not the case.

Once you open your brokerage account, you will need to fund it. That just simply means transferring some money from your checking account into your brokerage account.

Most brokerage accounts will let you transfer funds via an ACH transfer, direct deposit or even mail them a check to deposit funds. It all depends on your brokerage firm. Most accounts have a minimum deposit requirement of $50-$100 in order to get started.

You don’t need to have hundreds or thousands of dollars in order to start investing.

Let me know if you have any questions.

Please share this with anyone who may find it useful.

A brokerage account is where you’ll place your orders or trades to purchase shares of stock, bonds, etc. You can usually...
16/12/2023

A brokerage account is where you’ll place your orders or trades to purchase shares of stock, bonds, etc.

You can usually open a brokerage account online in about 15-20 minutes with any reputable brokerage firm.

OK now that I know the difference between stock and shares…. Now what? How do I buy shares? In order to start investing ...
16/12/2023

OK now that I know the difference between stock and shares…. Now what?

How do I buy shares?

In order to start investing and purchasing shares you need to open a brokerage account.

Just like you need a checking account to buy things with your debit card, you need a brokerage account in order to buy shares of stock.

Let me know if you have any questions or if I can explain anything.

So what’s the difference? Are stocks and shares the same things? I hear people using those terms interchangeably. A comp...
16/12/2023

So what’s the difference? Are stocks and shares the same things? I hear people using those terms interchangeably.

A company issues stock and you buy shares of that stock.

They both are referring to the stake that you own in the company as an investor.

Let me know if you have any questions or if I can explain anything.

Ok so how are they the same? They are both managed - meaning someone makes the decision on what to buy. They also both h...
06/12/2023

Ok so how are they the same?

They are both managed - meaning someone makes the decision on what to buy. They also both have fees.

By investing in various securities, you have less risk loss when compared to investing in 1 single stock. Also when several securities that are invested appreciate, that’s more than the price appreciation of a single stock.

Ok so what’s the difference between mutual funds and ETFs? Mutual funds are only traded once a day, after the markets cl...
06/12/2023

Ok so what’s the difference between mutual funds and ETFs?

Mutual funds are only traded once a day, after the markets close at 4pm EST. So you can place a trade throughout the day…. But it won’t get “processed” until after the market closes. **Everyone will pay the same price for 1 share when it’s bought.**

ETFs on the other hand can be traded all day long as long as the market is open. Just like stocks, the price can go up and down all day.
**Everyone that buys a share will pay a different price, based at what the price was when you placed your trade.***

Breakdown of ETF:-It’s traded on the stock exchange-It’s traded like a stock, where the price changes throughout the day...
06/12/2023

Breakdown of ETF:
-It’s traded on the stock exchange
-It’s traded like a stock, where the price changes throughout the day and you can buy and sell throughout the day
-It’s a collection “basket” of securities so it’s not as risky as just 1 single stock.

OK, I heard about something called an ETF. What is that? 🤔
06/12/2023

OK, I heard about something called an ETF. What is that? 🤔

OK, what are the various types of funds?
06/12/2023

OK, what are the various types of funds?

✅Stocks ✅BondsWhat about funds? What are those?🤔
06/12/2023

✅Stocks ✅Bonds
What about funds? What are those?🤔

Ok so now that you know what stock is, what’s a bond? A bond is basically an “I Owe You” from a company in exchange for...
06/12/2023

Ok so now that you know what stock is, what’s a bond?

A bond is basically an “I Owe You” from a company in exchange for the money they get for you buying the bond.

This is how a company can borrow money without getting a loan from a traditional bank.

Ok… what exactly are shares? 🤔If you own shares, that’s your slice of that companies ownership. The more shares you own,...
06/12/2023

Ok… what exactly are shares? 🤔
If you own shares, that’s your slice of that companies ownership.

The more shares you own, the more of the company you own.

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