With an investment club you can learn about the stock market by investing in collaboration with a group of motivated club members. With a club, members can experience stock market investing with just a small monthly contribution to the club’s investment account. Many clubs have produced investment returns well in excess of the stock market averages.

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Invite Potential Members and Hold a Meeting

An investment club typically has 12 to 15 members. To gauge the level of interest, the initial meeting should explain the purpose and goals of a club. Invite friends, relatives, co-workers and acquaintances or anyone who may be interested in learning more about the stock market and making money by investing in stocks. In the meeting, explain to prospective members that the club will be a formally established partnership, with regular monthly meetings and a minimum monthly investment contribution. Investment decisions will be by member votes, after the investment stories for specific individual stocks are presented by members and discussed. Provide an overview of the costs to set up the club, such as filing to form the partnership and the fees to join the National Association of Investment Clubs through its BetterInvesting website (see Resources). On that website, you can find the forms, templates and software you will need to manage the club.

Set Up the Club as a Business

Club Procedures and the Operating Agreement

References

Resources

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How to Start an Investment Club

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