I want to buy a share of Apple (appx. $235 I guess..), how do I go upon this and what happens?

Question

.. If I risk only the $235 and only buy one share (first off, is that possible?), how much will I have the capability to earn? And what's the best way to start off.. is it even worth it with this limited amount of money? Thanks

Answer 1

Yes, you can buy one share.  I don't advise it.  Stock brokers charge transaction fees as low as $4 and up to $30 per trade.  $4 would be almost 2% of your $235 investment.  Don't forget you pay another fee when you sell the stock.  So you're already 3.5% in the hole, meaning your stock has to appreciate 3.5% just so you break even.  This is assuming you pay the smallest trade fee.

I recommend saving about $3,000 before investing.  Even then, I would choose a mutual fund or ETF.  Buying a fund like the Vanguard Total Market Index gives you instant diversification.  If you put all your money in one stock, your betting your savings all on one company.  If Apple has a bad year, you'll feel it in the pocket book.