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9 Replies Last post: Nov 18, 2007 6:26 PM by MetroGal

How to start an investment club?

Nov 18, 2007 11:50 AM

TOO-LATE 4 posts since
Nov 18, 2007

I personally enjoy investing stocks and I've been accumulating experience for a long while. I have a blog and sharing my buying and selling transaction and explanations. Now I want to set up a investment club to gather more people to discuss the stocks. What do I need to do?
I've heard of there is fee for membership which I can make some profit of it.
Do I need some partners?
any qualifications required?
do I need a website for the investment club?
do i need to register it?

I'm sophemore in college and finance major.
Currently, I've seen many people complains about the stocks in their porfolio is all red and now they are looking for some recommended stocks from other people. I believe its time to do this business and the same time I can become a more sophsticated investor.
Your opinion is greatly appreciated!
My blog
http://investment-blog.net

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LUCKIEST 7,935 posts since
Aug 6, 2007

1. Re: How to start an investment club? Nov 18, 2007 12:05 PM

Starting an investment club O K
There are many steps involved in getting an investment club up and
running, most of them are relatively straightforward.
Start talking with friends and see who's interested. It's best
to gather a variety of people who will bring to the club a variety of
interests, experiences, and perspectives. Once you find a few
interested friends, let them invite a few of their own friends. Aim to
form a club with roughly 6 to 15 members.

The people in the investment club should be the ones to research and recommended stocks.
Good luck, LUCKIEST

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Ed O'Gee 215 posts since
Oct 25, 2007

2. Re: How to start an investment club? Nov 18, 2007 12:38 PM

The first step is to get members. Talk to friends, family and other like minded people. Then once you have the members you guys will need to incorporate and develop the bylaws that will govern the investment club. They you'll likely have to make the decision on if you'll select your own investment or enlist the help of a broker.

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TOO-LATE 4 posts since
Nov 18, 2007

3. Re: How to start an investment club? Nov 18, 2007 1:23 PM

in response to: LUCKIEST

Thank you, but do I require to register the investment club into state gov't with my brand name?
and how?
my investment club is setup into a website or what?
i need some specific detail of how to get it running. im seeking for the partners.

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Mozart 31 posts since
Jul 28, 2007

4. Re: How to start an investment club? Nov 18, 2007 3:07 PM

Congratulations for your entrepreneurial spirit! Before you start an business endeavor it's important to carefully evaluate the competitive landscape and understand how you would differenciate your business. For example, have you checked out all the existing resources out there that provide investment related information without a fee? What would differenciate your website/services/club? Good luck.

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slavaret 78 posts since
Oct 26, 2007

5. Re: How to start an investment club? Nov 18, 2007 3:56 PM

I believe the purpose of an investment club is to buy and sell stocks that members select collectively.

So the first thing you need is startup capital contributed by all members to fund a brokerage account. I would check with the IRS or an accountant to see what the rules are and what you can and cannot do. I would think it's OK to charge a small membership fee as long as it cannot be construed as a management fee. I am also sure members would want to have the terms of capital contribution, profit and loss sharing, and withrawals in writing.

There are many successful investment strategies. Your club members should share the same one - or you will never agree on a sigle stock.

If, on the other hand, all you want is to discuss stocks, setting up a group on Yahoo or Google will do.

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TOO-LATE 4 posts since
Nov 18, 2007

6. Re: How to start an investment club? Nov 18, 2007 5:18 PM

in response to: slavaret

thanks for your opinion.
First, I will post a page at my blog for seeking partners for my investment club.
second, I will list all the step to get my club runing. e.g after have enough partners, i will advertize my club through google, yahoo, or msn.
club rules, positions.
meeting schedules...
Can I setup my club into a blog(new one) where I only authroized people can see the contents.
Is that possible?
any more comments?

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TOO-LATE 4 posts since
Nov 18, 2007

7. Re: How to start an investment club? Nov 18, 2007 5:20 PM

in response to: slavaret

Can I divide all revenue to each of my partners according to how much club members have contrubuted?
I will be attract members through google ads...

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DomainDiva 1,732 posts since
Oct 10, 2007

8. Re: How to start an investment club? Nov 18, 2007 5:52 PM

There are IRS documents that you must prepare with all names, SS #'s and the PURPOSE of the club. The online brokers have a section for investment clubs and you can download all the documents you need from the website. Then you must fund the account and decide WHO gets to place trades. You will also need an internal specification detailing HOW the club is to be run, % of profit splits etc.

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MetroGal 101 posts since
Oct 20, 2007

9. Re: How to start an investment club? Nov 18, 2007 6:26 PM

A lot of great businesses have started right out of college dorms. You are at the head of the pack by participating on this website for advice. Welcome and good luck with your endeavor. It doesn't sound like you're "too late."

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How to start an investment club?

Nov 18, 2007 11:50 AM

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