Ever heard from a friend that they bought Nvidia, Amazon, or Apple shares when they were very cheap, and today their value has reached five or six figures? Such stories excite everyone. But the real question is: should everyone invest in individual stocks, and if so, how safe is it? Online influencers, social media, and video content make investing seem easy these days, but the reality can be quite the opposite.
Individual Stocks Growing Popularity Especially Among the General Public
A recent report by the BlackRock Foundation and Commonwealth revealed that 54% of low- and middle-income Americans are now investing in the stock market. Interestingly, most of these new investors prefer to buy individual stocks directly rather than mutual funds or ETFs. This shift is driven by internet access, easy information, and the convenience of starting investing with a small investment.
Just $5 and a smartphone investing has become so easy.
Today, entering the stock market is as easy as shopping online. The old days of hefty fees and the need for brokers are gone. Many platforms offer fractional shares, allowing you to purchase even a small portion of high-priced stocks. Even high-end stocks like Nvidia, Microsoft, or Tesla can now be purchased for just a few dollars. Technology has opened investing to everyone.
The pandemic created a wave of new investors.
During COVID-19, people were confined to their homes, spending was low, and savings were increasing due to government assistance. During this time, approximately 46 million new brokerage accounts were opened in 2020–2021. Many people realized that investing was the strongest way to achieve financial security. This is why the pandemic years brought a flood of new investors to the stock market.
When buying a home became difficult, the stock market became a source of hope.
Today, home prices are rising, and interest rates are also high. In such a situation, buying a home is becoming a distant dream for low-income individuals. But there’s no minimum entry limit for the stock market whether the amount is small or large, every investment step matters. Experts say that young people and low-income individuals are now turning to the stock market to build their net worth because it provides a level playing field for everyone.
Frequently Asked Questions
Q2: What are fractional shares?
They allow you to buy a portion of expensive stocks, making top companies accessible.
Q3: Is online investing safe?
Yes, if you choose trusted and certified platforms.
Q4: Can low-income individuals earn good returns?
Absolutely long-term investing with discipline builds wealth.
Q5: Is learning stock investing difficult?
Not anymore. Online tutorials and videos have made it easy.
Disclaimer: This article is for informational purposes only. Stock market investing involves risks. Please consult a financial advisor before making any investment decisions.
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