I need more info on how to start an investment club to invest in stocks. Could an fellow FWer help me with this please ! I need info as to to the legal status and Incorporation,Tax info. etc.
XFreebie
Senior Member - 2K
posted: Jan. 22, 2004 @ 5:26p
invest in what? invest as a group on stocks? its easier to just go the mutual fund way
or invest in properties? where thing's can get real messy...
Hawaii
Senior Member - 2K
posted: Jan. 22, 2004 @ 5:28p
use google and look up 'pyramid scheme'
SIGNHERE
Member
posted: Jan. 22, 2004 @ 5:37p
I remember reading a story some time a go about some "old ladies" that had a stock club and apparently did quie well, as I recall they wouldn't touch any "sin" companies, alcohol, tobacco, etc.
RJSachs
Senior Member
posted: Jan. 22, 2004 @ 5:42p
The Beardstown ladies were exposed as a scam long ago. Their investment returns were calculated using Enron-like mathematics (probably out of stupidity, rather than fraud).
<< The Beardstown ladies were exposed as a scam long ago. Their investment returns were calculated using Enron-like mathematics (probably out of stupidity, rather than fraud). >>
You're kidding me! Wow I didn't know that. I always thought they were just lucky bastards. How stupid do they have to be to not know how much was in their account?
harmlessbunny
Happy Member
posted: Jan. 22, 2004 @ 5:52p
RJSachs,
I don't know if it's sad or funny, but that Google link thing you did above applies to a growing number of the posts here.
I'd bet a lot of people don't read the "Please read BEFORE posting: A Guide to ..." thread. Maybe just before you post a new topic, a pop-up should say:
a) Did you Search? b) Did you use Google?
and you'd have to click "Yes" before you could actually post a message.
bssc
Senior Member - 10K
posted: Jan. 22, 2004 @ 5:58p
Do you think that would work as well as
STOP! You are about to post in the HOT DEALS category. This category is ONLY for posting of great deals. Do NOT post questions. Do NOT post requests. DO check to see if the offer has already been posted.
THANK YOU for your cooperation!
RJSachs
Senior Member
posted: Jan. 22, 2004 @ 6:03p
docido said:
<< You're kidding me! Wow I didn't know that. I always thought they were just lucky bastards. How stupid do they have to be to not know how much was in their account? >>
docido, basically what happened is they counted new money invested in their account as if it was part of the return.
Simple example: You start the year with $10,000. Your stocks go up by $1,000. But you also add $5,000 to the fund. They then said, "Our fund now has $16,000 in it. Therefore, we made 60% for the year."
Hondaboy
Broke Member
posted: Jan. 22, 2004 @ 6:12p
NAIC, the National Association of Investors Corporation is a good site/company to check out. I believe there are over 300,000 members...
Aside from looking at Google first, there are some good books out there. One that comes to mind is from the Motley Fool (I don't really like these guys, but they make good books for newbies).
Check out your local library. They will have at least one or two good books on the subject.
Good luck!
BillyBandit
Member
posted: Jan. 22, 2004 @ 7:00p
On a similar (kinda) topic..
Does anyone know how a mutual fund gets started? I've read through some of the stuff on the SEC site but before you get 100 investors, you need to have 10.
How can I open an account with $10k each from me and 2 friends, designate one of us to handle all investment transactions, pay that person a 1% management fee, and split the proceeds of any returns? If things go well, we could add more money in, accept money from others, etc. Once we meet the qualifications of a mutual fund, then we can file the necessary documents with the SEC. What software can be used to track each person's gains/losses and create the appropriate tax forms?
Is this something that can be done with an investment club? Do investment clubs ever turn into full fledged mutual funds? Is the creation of mutual funds limited to the gorillas out there?
<< NAIC, the National Association of Investors Corporation is a good site/company to check out. I believe there are over 300,000 members... >>
Investment clubs take on almost a "religion" of their own, and NAIC is the mother church! Talk to friends around your workplace or social contacts and find someone who is in an investment club. There are successful ones and disastrous ones, but in most, there are a few people who do a lot of work, and the rest of the folks just go through the motions. I was going to set one up among family members a few years ago, joined NAIC to take a look at their magazine and other materials, and did a lot of independent research. Decided that I would likely be the one doing all the work and dropped the idea.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Members of our community may attach files to a post in accordance with the User Agreement. FatWallet is not responsible for the content, accuracy, completeness or validity of any information contained in any attached file. Files have *not* been scanned for viruses. Be especially wary of Excel files which may contain malicious content.
