The Ultimate Guide to Investing in Stocks for Beginners
Investing in stocks can be an excellent way to build wealth over time, but getting started can seem daunting for beginners. This guide will walk you through the basics of stock investing so you can confidently navigate the markets.
What Are Stocks?
When you invest in stocks, you are buying shares of ownership in a public company. These shares are called stock, and they trade on exchanges like the NYSE or Nasdaq. If the value of a company's stock rises after you purchase shares, you can sell them for a profit.
How to Buy Stocks
Most individuals invest in stocks through an online brokerage account. Top brokers like Charles Schwab provide user-friendly platforms and tools to research, analyze, buy, and sell stocks with ease.
At Schwab, you can invest in U.S. stocks across major exchanges, as well as access international stock markets. They offer the ability to buy fractional shares, allowing you to invest in high-priced stocks with a smaller upfront investment. Powerful screeners help identify potential stock opportunities based on your criteria.
In addition to Schwab's website and mobile apps, active traders can use the premium thinkorswim trading platform packed with advanced charting, analysis, and order entry tools.
Get Started Investing with Funds
For beginners, an easy way to get exposure to the stock market is through funds like mutual funds or exchange-traded funds (ETFs). A single fund owns a basket of many individual stocks, providing instant diversification. This reduces your risk compared to buying just a few individual stocks.
Schwab offers thousands of mutual funds and ETFs to choose from across various asset classes and strategies. Index funds are a popular choice as they simply track a major stock index like the S&P 500 at very low costs.
Make Your First Investment Today
Whether you opt for individual stocks, funds, or a combination, the key is getting started. With a Schwab brokerage account, user education resources, and best-in-class trading tools, you can take control of your financial future by investing in the stock market with confidence.
Open a new account at Schwab.com to invest in the types of stocks and funds right for your goals. Supercharge your trading experience with the award-winning thinkorswim platform and start building wealth through stocks today.
