New Investor? Here Are 3 Great Starter Stocks
Beginning investors interested in individual stocks face the daunting challenge of not only having to understand the many factors that contribute to a stock's performance, but also having to choose from the thousands of stocks currently trading. As an alternative, many turn to index funds such as the SPDR S&P 500 ETF Trust or target funds that mix stocks and bonds that at least provide some diversity for their portfolios.
New investors may still want to better understand individual stocks, though, and seek out stocks that offer growth potential but are still simple to understand. Investors who choose beginner stocks like Amazon (NASDAQ: AMZN), Innovative Industrial Properties (IIP) (NYSE: IIPR), and PayPal (NASDAQ: PYPL) get this growth/comprehensibility combination as well as the ability to diversify holdings across multiple industries. Let's take a closer look.
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Source Fool.com
