INVESTMENT
CLUBS INFORMATION FOR BEGINNERS STOCK INVESTING
BASICS MUTUAL FUNDS BEGINNING PRINCIPLES
INFORMATION START IDEAS INVESTOR JOINING LEARNING INVESTMENT TYPES PERSONAL FINANCE GUIDE
101 ADVICE FREE
EDUCATION ARTICLE
Learn
the value of investing with others by starting
an investment club.
BENEFITS BEYOND MONEY: THE VALUE OF INVESTMENT
CLUBS
If you’re
looking to start investing in stocks but want to
expand your knowledge, increase your buying
power and gain new friends then an investment
club could be just the right avenue to get you
started on the right track to your investing
future.
Here is an
introduction to investment clubs:
INVESTMENT
CLUBS
What is an Investment Club?
An investment club consists of a group
of individuals who place their money into a collective pot in order to
purchase stocks as a group investment. Most clubs will buy stocks only after
a period of study of a particular company and with a majority vote of the
membership. Members may be responsible for researching particular stocks,
arranging for a guest speaker, or compiling financial reports.
So what are the advantages of belonging to an investment club?
Increase the pace of your learning
An investment club with 8 members doing research is bound to provide a faster
learning curve than what you could learn solo.
Reduce your investment risk
By pooling resources, club members can purchase a larger amount of stock at less
personal risk.
Gain the knowledge needed before going solo
Many club members do choose to invest their own funds but find that they make
better informed decisions about stock purchases from the knowledge gained
through participation in an investment club.
Develop new friendships
Like most clubs, investment clubs can offer not only the opportunity for
education but also for new friendships. Most investment clubs are not required
to register with the U.S. Securities and Exchange Commission however it is a
good cautionary step to check with two federal laws: the Securities Act of 1933
and the Investment Company Act of 1940 as well as checking for the laws of your
state under the office of the state securities regulator.
An excellent resource for the creation and how to ensure their long-term success
is the National Association of Investors Corporation. Of course, it’s not
necessary to create an investment club which requires actual purchase of stock.
An “educational only” club can be created and members can pool their resources
for the benefit of learning together while any stock purchases are left to
individual investors. No matter what type of investment club you might pursue,
the learning gained from an investment club is one of the best returns you’ll
ever get in terms of friendship and learning.
For teaching and learning about investing:
Teaching Investing Lessons
Teach and learn basic investing
and financial principles, including stocks, the stock market, interest, income statements. Lessons, lesson
plans, and worksheets.
To
teach and learn more money skills, personal finance, and money
management, please go to the Money
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Learning about
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