June 28, 0 Comments.

Stock trading has taken off over the last decade, with the advent of the Internet and online stock brokerages like Zecco and Scottrade. Membership with these brokerages and others has exploded. Now, everyone trades stocks in some form or fashion, either online daily or through ks and IRAs.

Are there any limitations on who can buy stocks, though? Is it really open to anyone with a few dollars to spare, or are there restrictions out there to keep certain people from the market? Most people can participate, though, so no worries; chances are you are still eligible. The biggest obstacle to buying stocks is age. In every state in the United States, there is a minimum age to buy and sell securities like stocks, bonds , etc.

This is due to two reasons. The second is liability exposure. What is this minimum age? It depends on the state.

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For every other state, you have to be at least 21 years of age — and brokerages do verify the identity and age of each person attempting to open an account. You can, however, get what is called a custodial account.

The only people allowed to place orders for that account are those who are at least 18 years of age or 21, depending on the state. Another obstacle to stock trading is insider trading — or, trading by people who have inside information about a company that can impact the stock price of that company. No; employees trade company stock all the time, especially those who have stock options. There is also the notion of conflict of interest, which exists when someone who can influence stock prices trades on that stock.

The best example is a stock analyst who has a popular show on TV. This analyst, because of his or her position and influence, can influence the price of a stock for good or for bad.

As a result, many publications have regulations in place to keep their analysts, reporters, or television personalities from making short-term trades or any trades at all in stocks.

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June 28, 0 Comments Tweet Tweet Stock trading has taken off over the last decade, with the advent of the Internet and online stock brokerages like Zecco and Scottrade.

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