We talked to people who've spent time and money investing.
From Tulipmania in 17th century Holland to the housing market collapse from 2005-2008, investment bubbles wreak havoc on investors and their finances.
I'll be honest; the Occupy Wall Street movement caught me by surprise. I always knew that in this country, a very small amount of people made big dollars compared to most people that made significantly less. Rather than dismissing this movement as some sort of fad, I took the time to dig a little deeper -- I wanted to know what all of the hubbub was about.
When I finally got to the point where I could start saving some money, I had visions of a steady flow of income from interest payments. So I started shopping for the best rates -- boy, was I given a rude awakening. Savings accounts paying 0.5% interest ; money markets at 0.9%; and CDs not too much better at 1.1% and maybe as high as 3% if I agree to lock up my money for FIVE YEARS.
It's time to research a publicly traded company and see if its stock is worth the money.
Penny stocks have more than one definition: officially, they're any stocks that trades below $5 a share, but in common use they can refer to any stocks "trading off of the major market exchanges." For someone who's new to the stock market and wants to get an idea of what it's like, penny stocks can be a great way to test the waters.
What happens when the stock market undergoes its most precipitous decline within a trading day ever? People freak out. And sometimes, stocks will become worthless. Literally.
Money is tight and jobs are scarce, so it may seem like investing is the last thing you should do. However, there are opportunities in this seemingly glum picture.