Investing

    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 working group analyzing reports.
    A Beginners' Guide to Managing Your Money
    What Are the Basic Investment Objectives and How Do I Set Them?
    Businessman trading stocks with smarthphone and check stock market data
    Best Stock Screeners of 2022
    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
    INV book roundup img
    The 9 Best Books for Young Investors
    Financial book roundup image
    The 8 Best Investing Books
    hundred dollar bills laid out
    What Is the Best Way to Use $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: Understanding the Key Differences
    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 If You're Broke
    How to Use a Benchmark in Investment Analysis
    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?
    What You Should Know About Investment Bankers
    What Are Short-Term Investments?
    How To Be a Conservative Investor
    6 Investment Styles: Which Fits You?
    Best Investing Courses
    Best Investing Courses of 2022
    United States dollars and a calculator showing 1,000,000,000.
    The Investopedia Guide to Watching 'Billions'
    Wall Street
    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
    Dollar bill
    The Investopedia Affluent Millennial Investing Survey
    A young investor reviews investments on a laptop and tablet
    10 Investing Concepts Beginners Need to Learn
    Fiberoptic network
    How to Leverage Research When Investing
    Midsection of Businessman Using Calculator and Laptop at Desk
    Sharpe Ratio Definition
    What is Beta in Finance, and How Is It Calculated?
    Midsection of Businessman Using Calculator and Laptop at Desk
    The Formula for Calculating Beta
    Alpha
    What Beta Means When Considering a Stock's Risk
    Modern Portfolio Theory (MPT)
    Charting the Market
    Alpha vs. Beta: What's the Difference?
    What Is the Fama and French Three Factor Model?
    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
    Explaining The Capital Asset Pricing Model (CAPM)
    Man pointing to a graph
    Understanding Arbitrage Pricing Theory
    Stock Analysis
    How Quantitative Analysis (QA) Works
    How Do You Calculate Beta in Excel?
    Businesswoman Using Laptop at Desk in Office
    Understanding the Sortino Ratio
    A risk analysis button set to low
    What to Know About Quantitative Analysis
    Inside the Treynor Ratio
    Learn What a Good Sharpe Ratio Is
    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
    Quantitative Trading Definition
    Quants: What They Do and How They've Evolved
    Modern Portfolio Theory: Why It's Still Hip