Getting in on the action — Investments for novice investors

Many people have the money to invest, but not enough awareness that allows them to decide which option to take. Traynor Capital Management reviews many available instruments out there and shares some investment options for novice investors today in this blog.

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1. Fractional Shares

The reality in stock trading is that the most powerful and robust companies you can invest your money in are also the biggest. This also means that they command a high price when it comes to their shares. This accounts for a huge roadblock for most average investors because they cannot afford the price. It’s a good thing that there’s the option of buying fractional shares. Perhaps you can’t afford to purchase a full share of Amazon’s stock, but you can get a fraction of it for only $200, as Traynor Capital Management points out.

2. Direct Purchases

Many local and international companies have programs that allow investors to buy stocks directly from the company, as opposed to purchasing through a brokerage account which is more expensive. However, the experts have observed that the direct purchase alternative is usually more effective for investors who want to own one specific company over a long period. These are normally offered in fractional shares, too.

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3. Dividend Reinvestments

New investors are attracted to the practicality and the convenience of having dividend reinvestments. This scheme automatically reinvests dividends or returns paid out by a company, which the investor uses to buy additional shares. If things turn out right and an investor’s decisions follow a series of favorable outcomes, it is quite possible for them to no longer have to pull any more financial investments out of their own pocket as their shares increase through time.

Traynor Capital Management was created to provide the ideal environment, sound roadmap, and perfect opportunity to allow its clients to grow and protect their wealth. For more similar topics, visit this page.

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