HBCU Writers's Project
For Immediate Release
November 24, 2012
Contact Information

Kerene Nelson
Florida A&M University

(BPRW) College Students Investing Their Finances

(BLACK PR WIRE/FAMU-TALLAHASSEE) "" In the FAMU School of Business and Industry, there is a hidden agenda among students. While some students are in the school to purse a bachelor's degree and others may be interested in producing a master's degree, there are a few students whose overall objective is to become wealthy and to secure their future before they walk the stage at graduation.

"When I get my net check, I pay my rent," said Keisha Hardy, 19, from Miami. "That's the primary thing I think about spending my money on, though I probably pick up a few items from the mall."

While the majority of students at FAMU pursue Ms. Hardy's way of financial planning, which is being responsible and paying your bills first, others are doing things with their money that you could never think of, buying stock. "I just buy one share a semester," said Phaedra Simpson, 23. "I used to get a lot of money back so I saw no other way than to do what I am taught in school."

Stocks are a form of ownership; they represent participation in a company's growth. Generally, investors are given no promises about returns of the initial investment. In fact, the profitability of the investment depends almost entirely upon rising stock price, which, at the most fundamental level, relates directly to the performance and growth of the company.

According to eHow contributor Carmelo Montalbano, for the average investor, common stock represents the best chance to grow their savings at a rate equal to or greater than the rate of inflation and still moderate the amount of risk they must incur. It is this ability plus the immediate liquidity of trading through recognized exchanges that gives common stocks such financial advantages over other stocks.

A disadvantage to buying stock is that stocks are volatile. A single stock's share price can vary widely from day to day, month to month, and year to year depending on numerous factors that are beyond your control. Another disadvantage is that companies can and do go out of business, at which time their stock usually becomes worthless. But if you select your stocks carefully, you can greatly minimize this risk.

On the bright side, when you have money to spend in your undergraduate career, and you don't have any real responsibilities as yet, stocks can be a very good investment. Many fortunes have been made simply by purchasing a few high quality stocks and holding them for several years. "I have always thought about purchasing stock but I was not sure how," said Julius Green, 19, from Quincy, Fla. "I feel as though there are people out there waiting to rip me off."

For students interested in buying stocks, be careful because stocks are tricky and buying stock should not be an impulsive behavior. Decide on a company that you are interested in, then follow the trend of the company. If you see that the company has been doing a pretty good job, find out all of the information you need to before purchasing. Start off small and then work your way up to more expensive ones, be strategic.