Expert: Gina Boykin - 11/19/2007

Question

I am a junior biochemistry major in college If I wanted to invest in the stock market what kind of stock could a college student look into that obviously cheap less then $1,000 and also long term?


Answer
When people are just starting out, I usually suggest to start with a mutual fund.  However, if you want to invest in a particular stock, why not start with what you know?  Companies in the biochemistry field would be a good start.  Also, look at companies that sell things you have.  If you're into gadgets, look at technology companies.  If you like golf, look at golf equipment companies.

If you find a stock in one of these categories that is in the $50 range, you will be able to purchase about 20 shares.  Then you can save up to buy more shares in the future.  Remember that there is a commission each time you buy or sell stock, so try to save up and buy several shares at a time.