Low-Cost Investment Choices

If you’re thinking about making an investment, and you’ve never done it before, you might be wondering if there’s a minimum amount of money you need in order to do so. The answer to that question is, in general, not really.

Investing in the stock market

Take the stock market, for example. If you’ve got $15 you’d like to invest, you can use your money to buy penny stocks. Penny stocks refer to corporate shares that sell for a very low amount. The generally accepted threshold for what constitutes a penny stock is under $5. Clearly, many companies offer very cheap shares lower than $5 — some company shares even trade at half a penny — so you could invest in plenty of penny stocks if that’s what you want to do. Be advised, however, that penny stocks are unregulated and are therefore riskier investments.

If you’d like to buy shares of a “blue-chip” company, one of the biggest and best-known companies that are very profitable, you can buy a single share if you’d like. Company X might be charging $35 per share. That cost, plus the transaction fee, will be your minimum needed to invest.

Other investment options

Other kinds of investments require minimum amounts of money, often quite high. If you’re thinking you’d like to put your money into a certificate of deposit, or CD as they’re usually called, you will want to shop for the best rates available. When you do that, you will discover that the best rates offered almost invariably require a significant dollar minimum — say, $10,000 or more. Other CDs require minimums of $100,000 or more in order to get their strong rates of return.

If you’ve got some money you’d like to invest, and you’re wondering how to go about doing it, be sure to consult with a financial adviser. He or she can walk you through the details of investing so that your money ends up where you want it to go — a profitable investment.