Q: I have a general question about stocks. Not having purchased any stocks in the past, I was looking at ShareBuilder by CapOne and I thought that I would seek a professional opinion first.
A: With the constant evolution of technology, there are more and more ways to easily start investing in stocks. As the competition has gotten tighter, the pricing has continued to fall. ShareBuilder is one low cost option to start investing and is not dissimilar to other low cost brokerage houses such as Schwab, Fidelity, and TD Ameritrade. Any one of them can offer you a great, low cost way to access a wide range of investment products.
More important than your custodian of choice will be your investment of choice. If you’re just getting started, you may want to look at using a low-cost, diversified index fund to gain exposure to your desired asset class (stocks, bonds, etc.). This will help reduce the risk inherent in security selection (i.e. picking stocks).