Investing 101

[greg s]

Hi Tina,

Here's my recommendation. I don't "trade" stocks (buy & sell often) very much. I tend to try to buy stock in established firms who are #1-2 in their industry that have the potential to increase in price over a longer time period (3-5 years) and pay dividends. Once you own at least 1 share of such a firm, you will be automatically enrolled in their dividend reinvestment plan (DRIP). This way, all the dividends you earn can be rolled back to buy more of the stock. But the big plus is you can buy additional shares (up to a dollar limit set by the plan) directly through the DRIP administrator without paying brokerage commissions. You wil get periodic DRIP statements which contain a form you can send in with a check to purchase additional shares.

Bob can probably explain more about DRIPs but it is, in my opinion, a good way to dip your toe into the market.