One time stock purchase

[ponyfool]

My wife and I have investments that do not involve stock trades. However, my 12 year old son has expressed an interest in buying stocks because of a classroom project.

We would like to buy him $500 in stocks (of his choosing), and now that he's picked two international stocks, how do we go about buying them without getting raped on fees? This is new territory for us.

 

[Jagermeister]

My wife and I have investments that do not involve stock trades. However, my 12 year old son has expressed an interest in buying stocks because of a classroom project.
We would like to buy him $500 in stocks (of his choosing), and now that he's picked two international stocks, how do we go about buying them without getting raped on fees? This is new territory for us.

Um, I have a classroom project too :lol:

If you want to really help him out, find a local reputable broker who will spend some time educating him, while doing the trade. If that's not important, there's always Ameritrade's flat fees.

 

[twowheelnut]

I heard about this new company that is suppose to have a rockin' IPO and I can get you in early. Look for it in under NASDAQ as 'TWN'.

:grin:

 

[Zorlac]

See if the companies in question have issued ADR's (American Depositary Receipts) on any of the American exchanges.

https://en.wikipedia.org/wiki/American_Depositary_Receipt

I'd have him look at ETF's (Exchange Traded Funds) for low fees and instant diversification.

 

[JR'SFJR]

Give local stock brokers a call listed in the yellow pages to see how much they would charge to purchase what you want. We do some business with a local discount broker that just charged $35 to sell a Roth IRA in stocks worth $3000. I believe they have a min. fee so if you don't purchase much, your broker fee % wise, becomes high for a small purchase. Major brokers will usually charge more. We also have accounts with Ameritrade. I trade online for $10. I am not sure how much you need to open an account now. Also, check other online brokers.

 

[kaitsdad]

I heard about this new company that is suppose to have a rockin' IPO and I can get you in early. Look for it in under NASDAQ as 'TWN'.
:grin:

So THAT'S how you afford all your bikes ....

TWN's Income Source

 

[twowheelnut]

:lol: Go figger!

 

[kulwen]

Sharebuilder.com

 

[SouthernCruizer]

I have used 3 or 4 online brokers, but the cheapest I have found so far is www.scottrade.com ... only $7 a trade.

Jay

'04 FJR 1300

 

[boogahboogah]

I am not a stockbroker/trader/employee of any financial firm.

1) You give the money to a broker & they will setup an account for you. Some brokers charge high fees and percentages when you buy/sell stocks (but supposedly offer more services) while other brokers charge much less in fees (but have limited services). Merrill Lynch is an example of the high price broker, Etrade & Scott Trade are the big cheapies, and Charles Schwab seems to be stuck somewhere in the middle (although they were the first 'discount' broker).

2) Foreign stocks have to meet certain reporting/fiscal sanity requirements to be allowed to be sold in US markets. In the US market, since there is an indirect connection to the company, non-US stocks are purchased with a vehicle called an ADR (depositary receipt). Not seen as a risk in and of itself.

3) Personally, I used to use Schwab & now use ETrade.

4) Short term profits are short term (purchase/sold within one year) taxable at regular rates, long term (over 1 year) are taxed at reduced rates.

Good luck with the project, wish my folks had started me early...

 

[Malve]

Ponyfool,

I have been a Financial Advisor with the big firms (Morgan Stanley, Smith Barney) for many years and started my own company last year. I don't do any commission business and typically help people with over $100K.

I would be happy to help you and your son take care of this at no charge along with any advice should you want any. Just seeing you as Queen WFO was payment enough.

PM me if you'd like.

 

[Checkswrecks]

Being a kid's project and having done kinda similar with the daughter and some Scouts, a couple of suggestions:

1. Obviously, whatever stock it is should be something the kid can relate to or comes up with, but have the kid start with a list, not just one pick. Then get some input (you've got some great offers already) to parse the list into what has better odds of some increase. Kids remember when they put money in a stock and it tanks.

2. Don't hold it too long or you lose the fun factor and the message.

3. When you sell, get at least part of it out as cash that the kid can spend asap. They just don't relate to changing numbers on a brokerage statement.

Bob

 

[LDRydr]

I worked through a book called TeenVestor with my daugher when she was younger (and before she knew EVERYTHING). HERE it is at Amazon. They also have a website at https://www.teenvestor.com

Gunny on you for helping him with it.

 

[Fred W]

I heard about this new company that is suppose to have a rockin' IPO and I can get you in early. Look for it in under NASDAQ as 'TWN'.
:grin:

So THAT'S how you afford all your bikes ....

TWN's Income Source

Uuummm... Not quite. Click that there 1 year chart. Mebbe if he sold out in October...