| Buy 1,000 shares of a $5 stock requires $5,000 CASH
Best leverage possible on stock is 2-1 (if bought on margin)
The stock market's long-term average annual growth = 8%-10%
A year later, the 1,000 shares.... 10% appreciation growth....equal to = $500.00 (but NOT cash), 10% ROI.
Does that beat bank savings accounts? Bank CD's? DEFINITELY! A $5,000 account won't interest stock brokers & mutual fund managers much. They'll probably be polite though, and invite you to bring more $$$ and be prepared to stay "....for the long haul."
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