Best Stocks for Teens
As a child enters their teenage there is a gradual change in their life as they look to embrace adulthood in various forms.
With the growing age, a teenager also feels a growing need for independence in their decisions and financial independence.
As a teenager, one might not want to be dependent on their parents to fulfill their needs.
Many times during the late teenage as one goes for higher education or college they need money to manage their education and daily requirements due to a lack of funds with their parents.
Today in this article we will aim to help teenagers look for the best stocks for teens in order to invest in the stock market and make money online.
If you are reading this article you must be interested in finding the best stocks for teens, we don’t wish to hold for much longer.
You could unlock all the questions you have to make an investment in the stocks market and we promise all teens agers that your search for the best stocks for teens ends here.
Can Teenagers buy stocks?
Yes, teenagers can buy stocks, it’s absolutely a safe practice to invest and trade in the stock market for teens.
However one must keep in mind that teens below the age of 18 can only invest through a custodial account or a joint brokerage account under the guidance of a parent.
However, once you are above the age of 18 you can open a brokerage account in your name and invest and trade in stocks without any legal barrier.
All the states of the United States of America follow this rule and there is no variance in the legal age to open a trading account under your name.
A parent depositing in a custodial account must understand that the amount deposited in a custodial account is irrevocable and it becomes the property of the under 18 teenagers.
We recommend that teenagers going through our article discuss thoroughly with their parents before opening a brokerage account and trade or invest in stocks only after thorough research of stocks.
Why should a Teenager look to buy stocks?
Many a time parents might have apprehension about their kids making an investment in the Stock Market considering the volatility and time it would take off their education.
Also, many teenagers might not invest in the stock market considering they might believe it’s a difficult job as it requires deep knowledge of finance.
Firstly we promise a read through this article will break free of the various misconceptions one can have about investing in the stock market and secondly we will now give some of the best reasons why a teenager must look for the best stocks for teens
- Learning money management skills: One of the best reasons for letting your son/daughter start investing is the learning one gets to save money manage expenses and make investment decisions to grow their wealth.
- Earning money for managing expenses: As a teenager you might be getting pocket money, winning competitions and earning money, get paid for part-time jobs. But what next the money you have and will be spent.
It is important to save a portion of your money from expenses and invest in Best Stocks for Teens to make money from money.
List of Best Stocks for teens
As a person looking for the best stocks for teens, we recommend having a safe strategy in place. One can look to buy stocks with a strong financial condition, established business model, and strong future outlook
1. Alphabet (GOOG) (Google Class A stock)
Business Overview: Google is a multinational technology-based company that operates in a diversified business space providing search engine services, online advertising, cloud computing, artificial intelligence, etc.
The company has grown immensely over the years providing video services through youtube, email services through the now-famous Gmail, etc.
|Market Cap||1.41 Trillion|
|1 Year Target Estimate||3,172|
|Total Cash (mrq)||133.97B|
|CEO||Mr. Sundar Pichai|
|Headquarters||Mountain View, CA|
Why we recommend buying stocks of google
- A strong financial condition
- Strong future outlook
- A diversified business model and the growth of IT make its future look bright
One important piece of information regarding stocks of google is that it provides the public with 2 types of stocks: 1) Class A alphabet stock which also gives voting rights to the investor and 2) Class C alphabet stocks which have no voting rights.
2. Amazon (AMZN)
Business Overview: Amazon is a multinational IT company that provides services like e-commerce, and digital streaming with a focus on emerging technologies like cloud computing and artificial intelligence.
|Market Cap||1.081 Trillion|
|1 Year Target Estimate||177.40|
|Total Cash (mrq)||66.38B|
|CEO||Mr. Andrew R. Jassy|
|Headquarters||Seattle, Washington USA|
Why we recommend buying stocks of Amazon
- Robust financial performance over the last 5 years
- Market leadership in the eCommerce space
- Global presence in diversified business operations
3. Apple Inc. (AAPL)
Business Overview: Apple is a multinational company that operates in the business of producing electronic products with the use of complex technology and provides some of the best electronic consumer products like iPhones, I-Pads, Apple TVs, etc.
|Market Cap||2.12 Trillion|
|1 Year Target Estimate||187.43|
|Total Cash (mrq)||51.51B|
|CEO||Timothy D. Cook|
Why we recommend buying stocks of Apple
- High market share in electronic goods for high-cost products
- The sticky business model forces consumers to buy all electronic products provided by Apple. Once you buy you will have to buy all the products to ensure you can make life easy. Rather than a product, it provides an ecosystem of products to its users
4. The Coca-Cola Company (KO)
Business Overview: Coca-Cola is one of the largest beverage companies globally.
It manages around 200 brands including Barq’s root beer, Costa Coffee, Dasani water, Fanta, Fresca, Gold Peak and Honest teas, Minute Maid, Powerade, Smartwater, Sprite, and Vitaminwater which are some of the best brands Coca-cola has.
|1 Year Target Estimate||69.84|
|Total Cash (mrq)||10.36B|
|CEO||Mr. James Robert B. Quincey|
|Headquarters||Atlanta, Georgia United States of America|
Why we recommend buying stocks of CocaCola
- It has an extensive portfolio of beverages
- Well-known among the people globally brings the trust factor required to drink the various drinks of Coca-Cola.
- High dividend yield company that provides dividends each year
5. McDonald’s Corporation (MCD)
Business Overview: McDonald’s is a well-known brand globally that manages fast-food restaurants selling mostly fast food.
It has spread across 118 countries with roughly 34000 restaurants and serves nearly 69 million customers daily.
|1 Year Target Estimate||278.75|
|Total Cash (mrq)||2.36B|
|CEO||Mr. Christopher J. Kempczinski|
|Headquarters||Chicago, Illinois United States of America|
Why we recommend buying stocks of McDonald
- Global presence with the high popularity of its food.
- Strong financial condition and performance over the years
- Strong management
- Positive outlook by research analysts
How can teens invest in stocks?
Well once you have selected the best stock for teens the next question arises how I should go about investing my money in these stocks.
There are many apps that provide for creating a custodial or joint brokerage account for a below 18 years of age teenager.
We are going to give you an example of such a platform known as Greenlight + Invest.
Some of the best features this platform provides are :
- It starts with a 1-month free trial period post which it charges $7.98 per month but no extra trading or commission fee is charged
- It also provides a debit card paired with the account for easy cash withdrawal
- It not only lets you invest but has tutorial courses that help a newcomer with the various key concepts about investment
- It allows one to start with a minimum of $1 and allows one to buy fractional shares.
Frequently Asked Questions (FAQs)
How to open a brokerage account for teenager
A teenager can open a custodial brokerage account but requires parents or grandparents to provide consent to open such a brokerage account for a teenager
Do I have to pay taxes on my income from stocks as a teenager
You will require to pay taxes if your income from stocks exceeds $2200
Finally, we have completed this article on the best stocks for teens. We aimed at educating the future of the United States of America, and the teenagers of the nation to know more about investing in the stock market.
Hopefully reading this article should motivate the teenage population of the country to make investing in the stock market seriously.
We recommend that one should learn more about the stock market, research the selected stocks and understand financial terminologies to get a deeper insight into the various aspects of investment.
You now have access to the best stock for teens listed in this article so what is stopping you go ahead and creating a profitable portfolio of stocks.
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