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Originally Posted by ScottO
I'm trying to come up with an alternative investment for my kids besides their savings account and brokerage account. Something they can flip fast to see how money can build.
Any ideas of something they could buy for $5 that could easily be liquidated later for a small profit?
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Your kids have a brokerage account?
Lucky them!
How about buying a dividend stock and starting a DRP of a company whose product they know about and use - McDonalds, Wrigley, and Coke are the classic ones.
You can find a DRP stock that doesn't charge a fee, the minimums are small (haven't seen anything in the 5$ range, but there are 10$ ones), and have them watch how dividends are reinvested. The only thing is that DRPs really aren't a "flip fast" thing.
I will warn you here that stocks can go down, so you might not make any hot or fast money. That can be the most important thing you can learn in any investment.
Check out
http://www.directinvesting.com/ for more info.