Saturday, March 3, 2012

Money matters.(QA)(minimum age to legally purchase stocks)(Brief article)

I'm a 14-year-old high school freshman who recently read BLACKENTERPRISE's [May 2009] cover story about what a good time this is for young investors to get into the market. Is there an age minimum for buying and owning stocks?

--Anonymous

There is no minimum age for owning stock--or any investment. Buying stock is another story. In the U.S., minors can't enter into a legally binding contract. Youngsters need an adult co-signer to act as a "custodian." So, for the next few years, you won't be able to march into a brokerage firm by your lonesome, plunk down a wad of cash, and walk out the owner of some hot shares.

There is good news. The young folks in our …

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