There’s a principle in investing called diversification, which is exactly what it sounds like – having a diverse range of investments. You may also find that not all brokerage accounts will give you the same access – for example, some may not offer a wide range of funds, which act as a basket of different investments so that you can quickly and easily diversify your investments. To invest in stocks this way, you may need to open a brokerage account to be able to buy stocks – these come with varying levels of trading commissions and account fees which can eat into any profits you make, so be sure to compare different platforms.

This does require a more in-depth level of understanding and you’ll need to continually check in on your investments to ensure that it stays aligned to the level of risk you’re willing to take. No hassle, no confusion, and a team of experts working hard to give your money more potential.īut if you have the time, and the inclination, then you may want to take a DIY approach to be able to pick, buy and sell exactly the stocks you want.

With robo-investing, that’s exactly how simple it is to invest in stocks. Doing it this way means you won’t have to spend ages researching and learning how stock markets operate in order to take advantage of the potential that investing in stocks could provide. This way, experts do all the heavy lifting for you and you just need to decide how much you want to invest and what level of risk best suits your need. For the easy option, you could use a robo-investing service like Wealthify. Investing in stock can be as simple or complicated as you want it to be. Having your money invested in stock could provide you with better rates than you’d get from an interest only account, although you are taking a risk as returns aren’t guaranteed. The theory here is that your money isn’t attached to a single influencer – for example, a savings account interest rate – it’s benefitting from lots of different things, such as the share price movements, dividend payments, and even interest from things like corporate or government bonds (although these last two aren’t available by just investing in stock). While your returns aren’t guaranteed, the hope with investing is that you can beat both inflation and interest rates. But in addition to this, some stock may also pay dividends either in the form of a cash payment or in more stock, rewarding you for being a shareholder. If the price of the stock you’ve purchased increases, then you could profit from it. There is a lot of potential when it comes to investing in stock, part of this is due to its volatility which refers to how much the price moves. When an investor buys a stock, they effectively become a part-owner of that company – although each stock only accounts for a very small part of that business.

Once an IPO is finished, stock is typically sold on the stock market where the price changes in line with supply and demand, but any profit of these sales does not go back to the company – instead the investor benefits from it. During this point, any purchases made will typically provide that company with a profit. They’ll split the company into lots of little parts – called shares, or stock- and will have a set price per share for the IPO. When a company wants to raise money, they’ll often look to issue stock in what is known as an Initial Public Offering or IPO. When it comes to investing, most people start looking into stocks and shares, but how do you invest in the stock market? What are the risks? And how difficult is it? As this is a beginners’ guide, it’s a good idea to start with the basics and look at what stocks are and the reasons why people invest in them.

Investing in stocks beginners guide