3. What to Know Before You Invest

Investors Sometimes Get a Bad Start

Investors find their way to the stock market through many different paths. Some investors may not even know they’re actually “investing” in the first place because their money is pooled into the markets through a pension or 401(k) plan. Other times, investors get their initial market exposure through a friend or family member with a new job in the financial services industry. Or sometimes, unfortunately, an investor’s first stock is a “penny stock”—one of many thousands of securities that can be bought for next to nothing but comes with the hope of future lottery-like wealth. Trust me, these penny stocks almost never work! All too many of these ultra-cheap stocks labeled ...

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