Someone please explain investment in stock???????

Lets say I have $10,000 and want to invest in stocks, such as Microsoft or Honda..... how do I go about it? What are the risks?

Is a CD or savings at 5% interest better?????

There are many ways to invest in stocks. I use an E*Trade account but you can also sign up with AmeriTrade, ScottTrade or any major trading company (Merrill Lynch, for example). It is very risky to invest in stocks. The best advice I have ever heard is from Warren Buffett, "invest in what you know". Don't let someone tell you "you should invest in XYZ stock". Invest in companies that you respect and use their products. That will minimize the risk. If you want to maximize your risk, invest in something you have no clue about and have never heard of.

Another way to minimize risk is to invest in Index Funds.

I would suggest you put that money in a more safer investment till you truly understand how the market operates. First rule of investing, never invest in something you don't understand. I would try a money market account with a bank then sit with the investment manager and have him explain how stocks work and the pitfalls..

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　　Vanguard Fund 　　Value Investment 　　Trust Investment 　　Stock Investment 　　startup Investments 　　Startup Capital 　　Sector Fund 　　Seed Money

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