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16/12/2023

Another common question people have is: What if I don’t have enough money to buy 1 share?

Depending on the share price of a stock you want to buy, it can get pricey. There are shares at various price points.

There’s stocks you can buy for under $10, as well as $100 and even $1,000 per share.

Some brokerage firms allow you to buy fractional shares(a slice) of a stock as well.

Let’s say ACME company has shares available for $100. You only have $50 in your brokerage account to invest. You can buy a 1/2 share for $50.

This is one way that you can slowly build your portfolio with the funds you have available to invest.

Remember: It’s not about the amount of money you have available to invest, but more so how consistently you invest.

As long as you stay consistent and invest continuously, your portfolio will steadily grow.

Let me know if you have any questions or if I can explain anything.

16/12/2023

This is another common question people have. Do I have to keep a share for a certain amount of time?

No there is no predetermined or required amount of time an investor needs to keep a share.

The choice is completely up to you.

You can sell it and have access to your funds in about: 1-3 business days depending on the type of security you are invested in.

Some equities and bond funds settle on the next business day after being sold.

Most stocks take 2 business days to settle into your account.

Meaning that you have a short waiting period in order to access your money.

It’s comparable to the timeframe to access funds in an online savings account.

Let me know if you have any questions or if I can explain anything.

16/12/2023

Do I have to buy a certain number of shares?

No there is no minimum amount to buy with stocks. There may be minimums for mutual funds.

Since ETFs trade like stocks, they do not usually have a minimum amount needed to invest other than the cost of 1 share.

Most people assume that they have to buy a large quantity of shares and that they don’t have enough money to invest. That’s not true.

Let me know if you have any questions or if I can explain anything.

16/12/2023

Do I get to choose how I receive my dividend? 🤔

💯 YES!! You can make your selection in your brokerage account.

You can select it individually, meaning you can choose to reinvest some dividends with DRIP and receive a cash dividends with other assets in your portfolio. It is completely up to you to decide.

Let me know if you have any questions or if I can explain anything.

16/12/2023

So does DRIP give me more in terms of dividends?

No it does not. It gives you the same amount of dividends (money paid for your shares), but it automatically buys you more shares of stock for the total amount of dividends they gave you.

So in the example above ⬆️, let’s say you will receive a $0.50 payout for every share you own. You own 10 shares, so that would mean that you would receive $5 in dividends. 💵

Since the total dividend received is the same price as a whole share of stock, that would buy you another share of that company’s stock.

So now next time you would receive dividends for 11 shares of stock, all without you having to buy any other shares yourself. 😏

Let me know if you have any questions or if I can explain anything.

16/12/2023

DRIP is also known as a Dividend ReInvestment Program.

When you opt into this, your dividends will automatically be paid to your brokerage accounts and automatically turn around and buy more shares of the same stock.

This is one option for your to receive your dividends.

You can always opt out of DRIP, and switch back to receiving a cash dividend. The choice is yours.

Let me know if you have any questions or if I can explain anything.

16/12/2023

Ok so why would you want to receive your dividends in the form of stock?

Let’s say you have a goal of owning 100 shares of a particular stock.

Would you rather pay for those 100 shares out of your pocket? Or would you like that company to help you out in buying more shares automatically?

Depending on how many shares you own, you may have enough dividends to buy another whole share of that stock from the dividend the company is paying you. So instead of having 10 shares you now have 11 shares. Next time you’ll get dividends for 11 shares instead of 10.

This essentially puts your investments on auto pilot. You will receive your dividends on one day and the next day, your brokerage account will automatically turn around and purchase more stock with those dividends.

Let me know if you have any questions or if I can explain anything.

16/12/2023

Ok so why would you want to receive your dividends in the form of stock?

Let’s say you have a goal of owning 100 shares of a particular stock.

Would you rather pay for those 100 shares out of your pocket? Or would you like that company to help you out in buying more shares automatically?

Depending on how many shares you own, you may have enough dividends to buy another whole share of that stock from the dividend the company is paying you. So instead of having 10 shares you now have 11 shares. Next time you’ll get dividends for 11 shares instead of 10.

This essentially puts your investments on auto pilot. You will receive your dividends on one day and the next day, your brokerage account will automatically turn around and purchase more stock with those dividends.

This will buy you more shares of stock without any money coming from you.

Let me know if you have any questions or if I can explain anything.

16/12/2023

Ok so if I buy a share of stock, how do I receive the dividend? 🤔

Companies will automatically pay you your dividend to your brokerage account.

Think of it this way: Just like you set up auto pay for your bills, where the bill is automatically debited on a specific date, dividends are automatically deposited into your brokerage account in reverse manner.

There is nothing specific you need to do on your end to receive your dividends.

The only thing you have to do is decide if you want to receive the dividend in the form of cash or stock?

Let me know if you have any questions or if I can explain anything.

16/12/2023

What does appreciation mean?

That’s simply when the price of an asset goes up in value. It is the opposite of depreciation.

Let’s say you buy a share for $10.
After a few months, the price of 1 share of that same stock is now $17 a share. That would mean that your shares appreciated $7 per share(or went up in value).

Let me know if you have any questions or if I can explain anything.

Let me know if you have any questions or if I can explain anything.

16/12/2023

What exactly is a growth stock?

A growth stock doesn’t pay a dividend. People buy growth stocks with the expectation that they will appreciate, so that they can sell it later on down the road for a profit.

Growth stocks do not pay a regular dividend. You will not be receiving any continuous income from growth stocks.

People that are looking to double their money are usually drawn to buying growth stocks that they think have potential to double or triple their initial investment.

**Investing in the stock market is not a sure thing. All investments have an inherent risk attached to them. Please make sure you do your research before you invest your money into any investment.***

Let me know if you have any questions or if I can explain anything.

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