Chapter 7
Finding the Right Kind of Stock
 
So, you want to buy some stock. But what kind? And how much? How many shares will you be able to afford? Do you have to buy a certain number of shares, or can you get just a few? How do you know what’s the right type of stock for your portfolio?
 
The point of investing in the stock market is to find solid stock that is a good value, and that will increase in value over time. Buying stock isn’t too much different than buying anything else. If you try on two pairs of jeans, both of which are of equal quality and fit, but one pair costs $60 and the other pair costs $40, you’d probably conclude that the $40 pair of jeans is a better value.
 
The same is true with a stock. For all sorts of reasons, stock ...

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