How to Read a Page by Richards I.A.

By Richards I.A.

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To most people, $2,500 is an astronomical sum, and that's not so strange. The average person simply doesn't have $2,500 lying around the house not being otherwise used. A number of brokerages do allow smaller initial investment amounts of $1,000 or even $500. In addition, many brokerages will allow you to open an account with a small amount if you agree to systematic deposits. This is a great way to build up a brokerage account by opening the account with a minimum amount, often as low as $50 or $100, and investing that same amount each month.

Although this type of client, however, would still do well to consider excessive service fees involved in these kinds of services. In addition, most stockbrokers aren't dishonest and do play upfront with their clients. After all, unhappy clients will leave sooner or later, so it's in the stockbroker's best interest to keep them happy. The average stockbroker, however, does have to make a living. So, for example, a stockbroker with his or her huge wealth of knowledge tells you that purchasing stock in XYZ Company is the single best thing you can 43 44 do.

At the end of the day, the results of trading a particular stock are added up from all locations and reported to the general public as composite trading. Think of the situation as a burger joint. The entire country couldn't walk into the same burger joint and expect to be served within a reasonable time frame. So, the burger joint opens up locations all over the country, and they all offer the same food to their customers. In the same way, the regional exchanges offer the same stocks for trade to local investors as the big ones do.

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