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The definition of an investment club is simple: a group of people who
share an interest in the stock market pooling their resources into one large
investment. Defining how an investment club works is more complicated.
In most cases the investment club will be registered as a partnership and
the members of the club will make decisions together on what stocks they
consider to be a good investment risk.
The majority of the time the investment decisions will be made after
some research has been done regarding the stock that is under consideration.
This will be discussed at length further in this book.
An important feature of an investment club is that the members are
there to have fun as they invest their money and learn about the stock market.
Making a profit isn’t the only goal of the club and members are encouraged to
have fun as they invest their money.
An investment club isn’t for those people who are looking for a fast way
to make some easy money. People who want a quick turn around are
discouraged from joining an investment group and investing on their own.
A main feature of the investment group is to start to learn how to invest
your money and to invest for a long term rather than a short one.
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