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Can I Buy Stocks With 50 Dollars?

Original post by Jade Balle of Demand Media

If you have $50 in disposable income available in your bank account you have the option to spend it on a nice dinner, put it toward debt or put it away in savings. But if you’re more of a risk-taker you might prefer to invest that $50 in stocks to try to turn a small profit.

Ways to Buy Stocks

You have three main options for purchasing stocks for your portfolio. The first is to walk into a brokerage office and place an order for stocks in person. Another is to contact the public corporation where you want to invest directly to purchase stocks. The third way is to buy stocks through online brokerages. Buying online is often the preferred method because it is quick and many online services offer stock research tools.

Buying Stocks With $50?

It is possible to buy stock with $50 as long as the stock price is under $50. So for instance, if the stock price is $10 you can purchase up to five shares. A single-share purchase is also possible. However some companies might require you to make a minimum purchase of stocks to invest -- usually 100 shares at once. This is sometimes referred to as a "round lot."

Where to Find Prices?

If you have $50 to buy stocks one of your first steps is to find shares costing under $50 and then do research to decide if it is a good investment. Look up the market prices of stock by checking financial publications or signing up for an online stock updating service. Some social media websites offer stock tickers and the ability to monitor the process of one or more specific stock symbols continuously.

Downsides

Though it is often possible to buy stocks with $50 it is not always a wise idea. For one, the fee that brokers charge for buying stocks is a large percentage of such a small investment. For instance, if the total cost of the stock you purchase is $41 and the broker fee is $9, the fee makes up 22 percent of the cost of the stock. The stock would need to rise 22 percent in value for you to break even on the transaction. You must also pay another broker fee if you decide to sell the stock.

                   

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About the Author

Jade Balle has been writing Web articles since 2004, covering everything from business promotion to topics on beauty. Her work can be found on various websites. She has a small-business background and experience as a layout and graphics designer for Web and book projects.

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