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                   I N V E S T I N G  B A S I C S
                    Wednesday, November 15, 2000

benjamin.rogers@enron.com
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REGISTER TO BECOME A FOOL -- GET FREE STUFF!
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-- Q. I want to open a brokerage account, but the firms I called
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account. What can I do?

-- A. Many brokerages don't have minimums. Details about and
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Note that commissions for discount brokerages have fallen to as
low as $5 or $10 per trade. (And some of them are offering free
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cry from the typical discount commission of $30 to $50 a few
years ago and the hundreds of dollars that some full-service
brokerages will still charge you today.

-- Q. I'm 14 years old. How much risk should I apply to what I'm
investing?

-- A. We love questions like this! If only all 14-year olds were
learning about investing.

Anyone can afford to take on some risk by investing in stocks --
as long as the money won't be withdrawn within the next five or
more years. If the money you're investing is for college, stocks
aren't a good idea, as the market could drop in the short term.
Those investing for the long haul can patiently ride out
downturns. Short-term investors should stick to safer plays,
like money market funds.

You're smart to start young. Let's say you invest $500 and it
earns the average annual market rate of 11 percent. In 30 years,
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retirement at 65 and it'll be nearly $100,000. Add to it over
the years and you're looking at early retirement!

Got some questions of your own for the Fool? Head to our Help
area or post your question on the Ask a Foolish Question
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INVESTING BASICS - CALLING ALL WOMEN

If you know a woman who isn't yet investing, clip out this
article and pass it on to her. She may thank you one day from
the bottom of her wallet.

Many women (and men, too) are steering clear of the stock
market, and they're paying a high price for it. Consider these
facts. Wives tend to be less involved than husbands in household
investing and retirement planning. Most married women outlive
their husbands. Fully 80 percent of all widows in poverty became
poor only after the death of their husbands. In 1992, 87 percent
of the elderly poor in America were women.

If we've now depressed you, hold on. There's good news, too.
More women are investing today than in the past. A 1997 study
commissioned by the National Association of Securities Dealers
found that 47 percent of investors were women, up from 37
percent in 1990.

When women invest, they can do very well. According to recent
National Association of Investors Corp. (NAIC) statistics, the
average annual lifetime return for all-women investment clubs
was 17.9 percent, compared with 15.6 percent for all-men clubs
(in 1997). Brad Barber and Terrance Odean, professors at the
University of California at Davis business school, offer an
explanation. In a 1998 study, they found that men are more
likely than women to be overconfident and to trade frequently.
Single men, for example, traded 67 percent more than single
women, reaping lower returns.

Here are some guidelines for women -- and heck, men --
interested in getting started:

1. Take the time to learn first. Don't jump into any investment
without understanding it and being comfortable with it. Read
"One Up on Wall Street" by Peter Lynch or our "You Have More
Than You Think."
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2. Don't be afraid to take on some risk. Sticking to low-risk
choices like bonds or money market funds dooms you to lower
returns. As long as you're investing for five to ten or more
years, you can afford to ride out any short-term market
downturns.

3. Consider forming an investment club. Learn how with the NAIC
at better-investing.org.
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IN THE SPOTLIGHT

-- Thinking about opening a new brokerage account? Visit our
   Discount Brokerage Center.
   http://www.fool.com/m.asp?i=196120

-- Steer a young one you know to our investing area for teens.
   http://www.fool.com/m.asp?i=196121

-- Here's a great wake-up call for women. You might print it out
   and pass it on to some friends:
   http://www.fool.com/m.asp?i=196122
_________________________________________________________________

A NOTE FROM THE AUTHOR(

I hope you're finding this product useful. The content
originally appeared as part of our nationally syndicated
newspaper feature (which I also prepare). Consider giving your
local editor a jingle and suggesting that they think about
carrying the Fool.
http://www.fool.com/m.asp?i=196123

Selena Maranjian
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