How to open an investment account

A: If she is over 18, then she can open an investment account in her own name to buy and sell shares of stock. If under age 18, open the account as a “Uniform Gift to Minors” under your name as trustee and her name as beneficiary. Generally a $1000 minimum deposit is required to open a new investment account. The simple account application forms are completed online or by mail. In either case a mailed signature page and a deposit check is needed to open the account. Once the account is opened (usually 2-3 business days) the stock can be purchased by telephone or online. One share will cost $50 to $55 (of course varying all the time). She can buy any amount of shares that she chooses, including fractional shares. The commission for the transaction will be about $11 regardless of the number of shares. Since Starbucks has been a volatile stock lately (it moves up and down rapidly more so than many other stocks) it probably makes sense to buy on a dip in the share price. This can be done on a self-serve basis or with OnlineAdviser support. Either way, the forms for Ameritrade discount brokerage can be found at www.tonynovak.com/investment.htm and telephone support is available through OnlineAdviser. (Any brokerage firm can be used but Ameritrade is supported by OnlineAdviser).