How do you get into investing in stocks and bonds? What is the minimum to invest?

I'm thinking about investing in stocks and bonds but I don't know the first step to take in investing in one. Do I go through a broker? How do I find one? How do I find one that won't jip me out of money?

In today's world the easiest way is on-line. E-trade being one of the on-line traders they are cheap and do not require a large minimum. Different stocks and bonds have different requirements for purchasing. For stocks 100 shares is a typical minimum. For Bonds I believe you might still find some for 1000 dollars. But there are always exceptions and you can still buy 1 share of some stocks.

Before you start understand trading is legalized gambling and though it is monitored there is still corruption. Only invest what you can lose. Always pay off your debt first.

For information on Trading. The local library is always a good source. There are also several Magazines and Newspapers always willing to give you pointers and their view of how you should invest.

Best strategies invest for the long term consistent gain.

Start with a no-load mutual fund. American Century is one of many companies that can help you with this. Stocks and bonds are a bit more labor intensive. A mutual fund invests the money for you, and spreads the risk over many types of investments. So, for instance, American Century will have high risk funds that have a greater average rate of return, but more risk, and low risk funds, that are heavily invested in blue chip stocks and other stable opportunities. And, there is no minimum....the trick is consistency. Invest, say...$100 a month. Period. Every month. No matter what. If you can afford more, great. But, investing is a long-term way to financial freedom, not a short term way to get rich.

You will need a broker. Online brokers are cheaper and not all of them are equal. I use Scottrade because they are small investor friendly and won't rip you off. You can type "stock broker" in your search engine and you will find several. If you go to MotleyFool.com under "Investing," "compare brokers", they will show a few to compare. ShareBuilder has no minimum for example. Watch out for monthly maintainence fees, Amertrade has that, it will eat your profits.

Great book that will answer all of your questions and is really easy to read: The Bogleheads' Guide to Investing

Go to your bank, they should be able to help you there, banks love money. LOL. All kidding aside, the bank should have information for you.

1. Learn all you can about investing or you'll lose it all guranteed!

2. Get yourself a good discount broker.

3. Only invest money you can afford to lose.

4. Have at least $500 as a bare minimum.

Good luck and happy investing!

For stock, you may purchase companies stock through "Stock Transfer Agent"

What is Stock Transfer Agent?
Basically, companies that have publicly traded securities typically use transfer agents to keep track of the individuals and entities that own their stocks and bonds.

How can i find a Stock Transfer Agent for the company i want to invest?
Usually, you can find a Stock Transfer Agent under the company's website, and it is usually under the investor relations section or "contact us" section.

Why should i buy stocks from Stock Transfer Agent rather than stock broker?
The beauty of buy a stock from Stock Transfer Agent is you can invest as little as $50 with a very little fee. For example, if you want to invest in JPMORGAN&CHASE, but you don't have a couple of thousand dollars yet. An initial cash investment can be as little as $250 with a small fee to own a company stock.

Another feature is you can reinvest the dividends to buy more shares free of charge, usually. Also, you can invest additional shares as little as $50 annually.

At last, you can buy and sell your shares freely through Stock Transfer Agent, or transfer your shares to any brokerage firm than sell it.

For bonds, depending on your investing experience and how much risk you can bear. If you are an inexperience investor, i, personally, recommand you invest US government bonds which is Treasury bills, or T-bills. The risk level of T-bill is very low since you lend your money to uncle sam.

How does a T-bill work?
Treasury bills, or T-bills, are issued at a discount from their face value. For example, you might pay $970 for a $1,000 bill. When the bill matures, you would be paid its face value, $1,000. Your interest is the face value minus the purchase price â€“ in this example, $30. The interest is determined by the discount rate, which is set when the bill is auctioned.

What is Treasury Direct?
Treasury Direct is the first and only financial services website that lets you buy and redeem securities directly from the U.S. Department of the Treasury in paperless electronic form. You enjoy the flexibility of managing your savings porfolio online as your needs and financial circumstances change - all the time knowing your money is backed by the full faith of the U.S. government.

Where can i buy it, and how much it costs?
You can buy T-bill from Treasury Direct website, and it is free of charge when you buy T-bill from them.

first do you have 6 months worth of expenses set aside in case you get fire or laid off -- if not get that in some good liquid account. if you do by not you will have all kind of answers. if not start saving and than think about investing.

one thing i will add some will tell you to go to a broker that is good -- they will have a money market account that you can park you savings in. you will need such a account anyway to have place to put monies from buying and selling stocks. most might require a 2500 min balance

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