Interested in owning some stocks?
i am 14 years old and I am wondering if it is even leagle for me to own a stock also how should i start?
- 1 decade agoFavorite Answer
Tell your mom to buy you some municipal bonds. Or MCD stocks.
- 1 decade ago
If you live in the US, your parents can open a brokerage account for you called a custodial account. You could then ask them to invest your money for you. When you are 18, you would be legally entitled to any money in the account.
You are never too young to learn about investing. You probably have access to the Internet and have time to study and learn all about companies and the stock market. You can research about many of the products and services that you come in contact with daily to see if they are a good investment opportunity.
Note that if you make money, you may have to pay income taxes on the gains and/or dividends once you exceed a certain amount. Larger amounts will be taxed at your parent's income tax rate. But don't let that discourage you.
Do not buy municipal bonds, as your tax bracket is too low to benefit from tax-free income. Even if you can only buy a few shares, it can be very rewarding. There are many discount brokerage firms that do not charge large commissions to buy stock. After you have done some reading and research, you might want to try a few practice trades first. Good luck.
Oh, now that you are interested in becoming an investor, you might also want to learn about taxes on investments and which of the major political candidates want to raise these taxes.
- CliffLv 41 decade ago
I doubt it would be legal - 1) you have to sign up with a brokerage company 2) stocks are ownership in a company and since you cannot enter a contract you most likely cannot take ownership of a company.
I would put that money into a good bank account and save it up til you are 18 to invest then
- 1 decade ago
Save it, but watch the stock market as you save.
And in a couple years you will have a great deal of knowledge (which is definately needed when making $ on the market) which you can use to multiply your investments by whatever the market does.
If you save enough, and know enough...You can potentially be a millionaire by the age of 20!
But, knowledge is key!
Patience, and research will pay off more than risk taking.
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- Anonymous1 decade ago
Probably not until you are 18.
Also, do you have any idea about stocks or how they work? Otherwise you are quite likely to lose all your money very quickly.
Trade a virtual account and read all the articles on www.investopedia.com before you even think about it.
Alternatively, read the info on babypips.com if you want to trade foreign currencies (FOREX) instead and set up a free demo account with a broker.