Investing differs from trading in that investing is for the long-term, usually years or decades. Investing is one of the key strategies to building long-term wealth and financial security.

Frequently Asked Questions
  • Can I start investing with $1000?

    Yes, many brokerages have no minimum account size and will offer zero-commission trading, allowing you to begin investing with even very small amounts. In fact, now with many brokers offering fractional shares, you can invest in stocks even if their share price is over $1000.

  • How do I invest in stocks?

    While there are many ways to invest in stocks, one of the easiest and best ways for beginning investors to do so is to open up a retirement account with a discount broker. These accounts have tax advantages when saving for retirement and many different brokers have ones that cost little or even nothing to have.

  • How can I invest with no money?

    While you can’t invest with zero money, you can invest with very little. Many stock brokers offer accounts with no minimum balance and no trading commissions so almost any amount you add to your account can be used to invest.

  • Why should I invest?

    You should invest because investing allows your savings to go farther than they otherwise would. Simply holding your savings as cash means it will just sit and be slowly diluted by inflation, whereas even in the safest investments it will earn some money for you, building on itself.

  • When should I start investing?

    As soon as you can afford to. Because investment returns compound, that is, the money you earn from investing then earns money, the sooner you begin investing, the more time you give for this process to work.

  • What time does the stock market open and close?

    In the U.S. stock markets major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq are open from 9:30 .a.m to 4.p.m Eastern Time. However, this varies around the world depending on what exchange you’re looking at and whether that day is a holiday.

Key Terms
A woman viewing laptop screen with graph diagram.
4 Key Investment Strategies to Learn Before Trading
Lawyer and businessman working and discussing business contract papers in office.
10 Timeless Rules for Investors
Financial goals,saving money
Why Should I Consider Investing?
midsection of businessmen working on laptops with graphs and charts on the table around them
Investing vs. Speculating: What's the Difference?
A working group analyzing reports.
A Beginners' Guide to Managing Your Money
Defining Your Basic Investing Objectives: What To Factor In
Stock Screeners
Best Stock Screeners
Business Woman Thinking Account
Economic Indicators You Should Know for Investment
Making Money Investing in Mutual Funds
How to Invest $1,000
Stock Market Graph Chart
Avoid These 8 Common Investing Mistakes
Book roundup
The 7 Best Books for Young Investors of 2022
Financial book roundup image
The 7 Best Investing Books in 2022
hundred dollar bills laid out
What Is the Best Way to Invest $100K in Cash?
Law angle view of business skyscrapers
Best Investment Accounts for Young Investors
Dollars flying away from a bag of money - Investing costs concept illustration
The Costs of Investing
Saving vs. Investing: What's the Difference?
The Top 25 Investing Quotes of All Time
Young business man in suit looking at financial charts on computer monitor
Tips for Long-Term Investors in Volatile Markets
How to Invest When You're Broke
Using Benchmarks in Investing
Businessmen holding pens and holding graph paper on a wooden table.
7 Steps to a Successful Investment Journey
coins being dropped in a jar next to two other jars that have more coins and all three having a growing plant
How to Invest in Uncertain Times
Aerial of Downtown Manhattan, NYC
How New York Became the Center of American Finance
Midsection of Businessman Using Calculator and Laptop at Desk
10 Tips for Successful Long-Term Investing
Are You Investing or Gambling?
Investment Banker Defined, With Examples and Required Skills
Short-Term Investments: Definition, How They Work, and Examples
How To Be a Conservative Investor
6 Investment Styles: Which Fits You?
Best Investing Courses
Best Investing Courses
United States dollars and a calculator showing 1,000,000,000.
The Investopedia Guide to Watching 'Billions'
Wall Street street sign
What Is Wall Street? Role in Investing and Why It's Famous
How To Talk Like An Investor
a man talking in a group of people
4 Tips for Joining an Investment Club
5 Advantages of Investing in Your 20s
Woman shopping online with a credit card
How to Give Digital Assets as a Gift
Dollar bill
The Affluent Millennial Investing Survey
A young investor reviews investments on a laptop and tablet
10 Investing Concepts Beginners Need to Learn
Sharpe Ratio
Sharpe Ratio Formula and Definition With Examples
Beta: Definition, Calculation, and Explanation for Investors
Midsection of Businessman Using Calculator and Laptop at Desk
Beta Formula: How to Calculate the Beta of a Stock
Alpha: What It Means in Investing, With Examples
What Beta Means When Considering a Stock's Risk
Modern Portfolio Theory: What MPT Is and How Investors Use It
Charting the Market
Alpha vs. Beta: What's the Difference?
Fama and French Three Factor Model Definition: Formula and Interpretation
Using Beta to Understand a Stock's Risk
Calculator and Charts
Understanding the Sharpe Ratio
Alpha and Beta for Beginners
Alpha and Beta for Beginners
Unlevered Beta: Definition, Formula, Example, and Calculation
Man pointing to a graph
Arbitrage Pricing Theory (APT) Formula and How It's Used
Stock Analysis
Quantitative Analysis (QA): What It Is, How It's Used in Finance
How Do You Calculate Beta in Excel?
Businesswoman Using Laptop at Desk in Office
Sortino Ratio: Definition, Formula, Calculation, and Example
A risk analysis button set to low
A Simple Overview of Quantitative Analysis
Treynor Ratio: What It Is, What It Shows, Formula To Calculate It
What Is a Sharpe Ratio? Understanding Its Use in Investing
How to Calculate Beta in Excel
CAPM vs. Arbitrage Pricing Theory: What's the Difference?
CAPM, Capital Asset Pricing Model.
CAPM Model: Advantages and Disadvantages