Is it worth investing 50$ in the stock market?

Answer this question

  • Is it worth investing 50$ in the stock market?


Answer #1 | 21/12 2013 19:35
You need a brokerage account in order to invest money in the market. You can read about those. There is something called commission that is a charge for the privilege to buy a stock. Basically its $10 to buy and $10 to sell. My point being $50 is worthless in the market. You would need almost a 50% return to even break even on broker fees. I would say you need at least $500 to invest in the market, even that is kinda small. Best short and long term investment....cant really answer that. No one can predict the future so its hard to say one specifically. Thats like asking what is the THE BEST car on the market. Everyone has their opinion and hearing the opinion of one person will do you no good. Also underexposed is wrong. You can get a custodial brokerage account under the age of 18. But, no offense, you clearly dont know much about the market and you should do serious research before you consider investing. good luck! its awesome you have an interest so early.
Positive: 100 %
Answer #2 | 22/12 2013 21:13
According to me its too small to invest you should make little larger amount and then go for the investment
Positive: 0 %
Answer #3 | 23/12 2013 11:30
I can't speak for Canadian tax laws. In the US if you hold a stock for less than a year then any profits are taxed at your income rate. (Whatever tax bracket you are in based on the wages you earn.) If you hold a stock for more than a year then you are taxed on any profits at a capital gains rate (usually less than your income rate.) If you sell at a loss you do not have to pay taxes. If you sell with a gain then you pay the taxes in the year that you sold. If you are 14, do not have a job and are not currently earing income I wouldn't worry too much about tax rates. You can look to open an account a custodial account at a discount broker. (see link below)Trades will cost you a transaction fee usually under $10 (~$5 - $9) to buy and then another transaction fee for the same amount to sell. If you are going to be buying and selling often you want to have more to start with than $50. If you plan to buy something for $50 and hold on to it for four or five years then go ahead. I suggest you match your dad's $50 with $50 of your own! You might want to look for something that will pay you a dividend. You will have to pay taxes on dividends. You should also look at investing in Mutual Funds or Exchange Traded Funds (ETFs) With a purchase of an ETF you can only several stocks at once. It will help to diversify your investment. You might not make as much money, but you have less risk to lose the amount that you do invest. Stay away from penny stocks - that's anything under $5. You might think you are buying more shares, but more shares aren't always better.

Possible answer

Login to your account
Create new account