Teach her how to use a scanner so she can look up stocks that have a good dividend and who have not failed to pay a dividend for a couple of decades and who have not cut the dividend in that amount of time. Most internet brokers have these tools on their web sites.
Talk to her about dividend re-investment for her future and how that can add up to something very real by the time she reaches retirement age.
A young person can take a lot more risk than an one of us close to or at, retirement age but starting out with those simple tools will teach a good beginning.
As to GM, the first question that must be answered is will they be in business much longer. They had many years to respond to the public demand for fuel efficient automobiles and wasted them. Now, they have government money to try and catch up but having the money to do it and making it happen are two very different things and the company has not shown much initiative in this area.
I'm sure you are very proud of her for showing this interest and I hope she follows through with patience and conviction to sound investment guidelines and doesn't look for the quick buck .. fast payoffs lead to fast losses in many cases and learing to be a trader and being nimble enough to know when to get in and when to get out is learned slowly and often painfully.
All best,
Bob
On Fri, Oct 10, 2008 at 10:45 PM, Steven Booska
<boos1@xxxxxxxxxxxxx> wrote:
My 22 year old college senior daughter called me today and expressed and interest in investing in stocks. Her perception is that this market is very oversold with GM, etc. offering opportunites. I have never discussed trading or investing with her and feel lost as to where to start. Does anyone have any rules, advice or reference to training or education sources they would give their child in this situation?
Steven Booska