If your financial situation affords you to be able to, invest a portion of your stimulus check into something that will help generate more money for you.  I hope it's not too late for you, because you have already shopped for clothes online. Now is the time where you stop making others rich by your impulsive shopping, instead invest in ways to make YOU more money.  A good investment is investing in the stocks of reputable, long-term successful companies, by opening up a brokerage account through an investment firm.  TIAA.org is one of the companies that has a user-friendly website to set up a brokerage account for as little as $100 dollars.  Just make sure that you understand what the terms of different types of investments are before investing any money. By speaking with a broker, you can gain more information on where to invest and how.  Also, make sure that the investment account is commission free.   When you invest in Stocks, you will see terms that you might not be familiar with such as: 

 

A market order is an order to buy or sell a stock at the best available price.  Generally, this type of order will be executed immediately.  However, the price at which a market order will be executed is not guaranteed.  It is important for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed.  In fast-moving markets, the price at which a market order will execute often deviates from the last-traded price or “real time” quote.

​

A stop order, also referred to as a stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price.  When the stop price is reached, a stop order becomes a market order.  A buy stop order is entered at a stop price above the current market price.  Investors generally use a buy stop order to limit a loss or to protect a profit on a stock that they have sold short.  A sell stop order is entered at a stop price below the current market price. Investors generally use a sell stop order to limit a loss or to protect a profit on a stock that they own.

​

A limit order is an order to buy or sell a stock at a specific price or better.  A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.  A limit order is not guaranteed to execute.  A limit order can only be filled if the stock’s market price reaches the limit price.  While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a pre-determined price for a stock.

​

A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order.  Once the stop price is reached, a stop-limit order becomes a limit order that will be executed at a specified price (or better).  The benefit of a stop-limit order is that the investor can control the price at which the order can be executed.

 

It is important that before you invest in the stock of any company, you make sure that you understand what those terms mean as well as what terms and conditions are set by your broker.   To find out more about investing in stock click on this link: https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks

​

​

You can also watch this YouTube video as well.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

By Jason Torrents

​

Source: U.S. Securities and Exchange Commission