Expert: Dr. Joseph de Beauchamp - 6/25/2007

Question
Hello! I live in St. Louis, and I was wondering how to go about buying stock. I have never done this before and was wondering how it is done. How much will it cost me? How much would I usualy make? Who do I contact to buy it? Please help. Thanks

Answer
Doing a lot of research on your time, this is the best. I would recommend going to the public library near you to read over the Valueline and Morningstar books. These are about 10,000 pages. I think you will head towards a mutual fund after you read these books. You will not have to read everything, but will find that mutual funds provide good strong spreading of the risk, and the best place to start off. Stocks will have commissions, and can be bought anywhere at a local broker dealer. I think you will find the mutual funds are cheaper and better for you to explore.

I also think that after you read over this material, that there is one investment that most investors never hear about. US govt saving bonds are found only at the banks, and can be an excellent and non-risk alternative. Sometimes people become involved with investments with stocks, for the excitment and the stories that are heard. US Savings Bonds pay a very high rate, and carry no costs to invest.

Dr. Joseph de Beauchamp