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Several Factors to Considering When Setting Up a Club:
NAIC can provide many materials to start up a club
First set goals for the club: ex. (1) education (2) enjoyment (3) financial enrichment (don't plan on getting rich quick)
Importance of education - primary purpose to serve as a forum in which its members can learn about the stock market
Keep things enjoyable
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
Determine the structure of the club - either partnership or corporation; consult with an attorney and accountant to verify status
Operating Agreement - draft an agreement that outlines rules acceptable to members and legal authorities; limit the authority of a single partner
Liability - broker's statements should be circulated and make no unauthorized disbursements
Club Name - should clearly state the purpose of the club
Officers - four makes for a well run club: senior partner, junior partner, recording partner, financial partner
11. Elect officers annually
Individual Responsibility - each member should assume the responsibility of tracking at least one of the club's investments
Monthly Contribution -- simpler to keep track of each member's account if there is a fixed amount due at every meeting
Voting - every member should have an equal vote
Record Keeping - keep minutes of every meeting to be reviewed at the beginning of each meeting
Investment Criteria - determine pre-established criteria for stock selection
Price Range - agree upon an acceptable price range for the securities you buy
Types of Stock - investments should be spread among industries
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