I need advice on some stock options, and the whole process in general. Can anyone give me some beginner tips?

I was given some money from my grandfather to invest, and in doing so gain some knowledge about the stock market itself. If there is anything that you can tell me on where to begin, it would be much appreciated. Thanks!I need advice on some stock options, and the whole process in general. Can anyone give me some beginner tips?
I would not buy stock options they are too risky, especially for beginners. I would recommend the following approach:





First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. Financial disasters like getting layed off or sick happen to all of us.


Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.


Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.


Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work.


Believing someone you met over the Internet and know nothing about is risky. Read these websites for further information.I need advice on some stock options, and the whole process in general. Can anyone give me some beginner tips?
I'm a beginner as well. I suggest watching Mad Money on MSNBC weekdays at 3pm Pacific time. Its very entertaining as well as informative. The guy simplifies everything for you too. Great show!