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where can i invest?
can students invest in stock market?
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Farhan’s Answer
Hi Manisha,
First, yes, students can invest in the stock market. However, investing is not without risks. As you start off, I recommend only investing "excess funds". That is, if the value of those stocks goes down and you lose all the money, it won't cause financial hardship for you or your family. I also recommend borrowing money to invest (known as margin).
Before diving into the real thing, I do recommend playing around with a fantasy stock market (i.e. paperMoney, HowTheMarketWorks, Wall Street Survivor) so you can get a feel of "buying" and "selling" stocks, and see how your performance is. You can invest in a variety of companies' stocks to see how they perform. Some industries are more volatile, so values will go up and down more frequently. Newer, growing companies can be more risky to invest in, but can also increase greatly in value over time. Some companies (i.e. blue chips) are more established and hold a steady value, which a risk-averse investor might prefer. Playing around with a fantasy stock market can help you assess your risk tolerance.
With those warnings out of the way, the way to actually begin investing is by creating a brokerage account with any of the stock trading platforms available today (i.e. Robinhood, Webull, E*Trade, etc.). Once you create an account, you can add funds by linking a bank account. You can then review companies and decide if you want to purchase their stock. You should consider their industry and their financial statements to try and gauge if it's a wise investment.
First, yes, students can invest in the stock market. However, investing is not without risks. As you start off, I recommend only investing "excess funds". That is, if the value of those stocks goes down and you lose all the money, it won't cause financial hardship for you or your family. I also recommend borrowing money to invest (known as margin).
Before diving into the real thing, I do recommend playing around with a fantasy stock market (i.e. paperMoney, HowTheMarketWorks, Wall Street Survivor) so you can get a feel of "buying" and "selling" stocks, and see how your performance is. You can invest in a variety of companies' stocks to see how they perform. Some industries are more volatile, so values will go up and down more frequently. Newer, growing companies can be more risky to invest in, but can also increase greatly in value over time. Some companies (i.e. blue chips) are more established and hold a steady value, which a risk-averse investor might prefer. Playing around with a fantasy stock market can help you assess your risk tolerance.
With those warnings out of the way, the way to actually begin investing is by creating a brokerage account with any of the stock trading platforms available today (i.e. Robinhood, Webull, E*Trade, etc.). Once you create an account, you can add funds by linking a bank account. You can then review companies and decide if you want to purchase their stock. You should consider their industry and their financial statements to try and gauge if it's a wise investment.
Updated
Noah’s Answer
For someone under 18 to invest in the stock market you will need to do it through what's called a "custodial brokerage account." Essentially you will need someone over 18 (usually a parent/guardian ) to sponsor your account and assume legal responsibility. They also will usually sign off on whatever trades you make. There are several brokerages (stock trading platforms) that offer custodial accounts but one of my favorites is Bumper Investing. It is 100% free, no fees and offers educational resources for investing and personal finance too. They also have an ambassador program and a discord with lots of educational support.
If you're interested, here's the link: https://www.joinbumper.com/
If you're interested, here's the link: https://www.joinbumper.com/