Question for the Money Doctors

Question submitted on Oct 11, 2021.

Question

Hello. I am considering purchasing my first stock. I want to purchase Cricket Wireless so can use the dividends to pay my bill quarterly. My question is two-fold. What is the best way to go about purchasing my first stock/s? And how do I determine how much I need to purchase to accomplish my goal for this stock.

Answer

Cricket Wireless is a wholly owned subsidiary of AT&T and does not trade publicly. Instead of buying an individual security, you could reduce your risk and diversify your holdings immediately by buying an exchange traded fund (ETF) or mutual fund that invests in the S&P 500 or total stock market.   Individual securities add risk to your portfolio, which is unnecessary, especially for a first time investor.

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