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Chapter 7. Equity Investments: Taking St... > Ways to Invest in the Stock Market

Ways to Invest in the Stock Market

There are two ways to invest in the stock market: through the purchase of individual stocks and through the purchase of shares in mutual funds, which are discussed in great detail in Chapter 11. The concepts associated with equity investing apply to both individual stocks and mutual funds, so let's start by looking at what you'll need to consider in choosing which path or which combination of these makes the most sense to help you achieve your goals.

Saving Tip

Mutual funds are professionally managed pools of securities. These funds offer diversification and professional money management, two key elements to reducing risk that we discussed last chapter. They also offer investors with limited cash to save with minimum investments as low as $25 per month.



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