Make your own free website on Tripod.com

Several Factors to Considering When Setting Up a Club:

  1. NAIC can provide many materials to start up a club

  1. First set goals for the club:  ex. (1) education  (2) enjoyment  (3) financial enrichment  (don't plan on getting rich quick)

  1. Importance of education - primary purpose to serve as a forum in which its members can learn about the stock market

  1. Keep things enjoyable

  1. Finding the right number of people for your club - need enough to be able to follow a diverse range of stocks, need members committed to doing their share, members must be acceptable to the entire group

  1. Determine the structure of the club - either partnership or corporation; consult with an attorney and accountant to verify status

  1. Operating Agreement - draft an agreement that outlines rules acceptable to members and legal authorities; limit the authority of a single partner

  1. Liability - broker's statements should be circulated and make no unauthorized disbursements

  1. Club Name - should clearly state the purpose of the club

  1. Officers - four makes for a well run club: senior partner, junior partner, recording partner, financial partner

  11.   Elect officers annually

  1. Individual Responsibility - each member should assume the responsibility of tracking at least one of the club's investments

  1. Monthly Contribution -- simpler to keep track of each member's account if there is a fixed amount due at every meeting

  1. Voting - every member should have an equal vote

  1. Record Keeping - keep minutes of every meeting to be reviewed at the beginning of each meeting

  1. Investment Criteria - determine pre-established criteria for stock selection

  1. Price Range - agree upon an acceptable price range for the securities you buy

  1. Types of Stock - investments should be spread among industries

HOME | GETTING STARTED | WHAT IS A STOCK? | ANALYZING STOCKS | FORM AN INVESTMENT CLUB | DRIP INVESTING | GLOSSARY | HELPFUL LINKS | SOURCES UTILIZED | BRIEF OVERVIEW ON MUTUAL FUNDS