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Q: Are there any books that I could purchase to help me understand the stock market and how it operates? I would like for this book to be easy enough for a sixth grader to understand.
–O. Jackson, Nashville, Tennessee
A: First, let me commend you for having the courage to actively seek help understanding the stock market. That’s the first step to becoming a successful investor.
There are several books available for the novice investor. Any of these offerings can enhance your knowledge of the stock market, but you’ll have to decide which book best suits the way you like to learn. We recommend Investing for Dummies by Eric Tyson (IDG Books Worldwide, $19.99); Getting Started in Stocks, 3rd Edition by Alvin D. Hall (John Wiley & Sons Inc., $19.95); and the Black Enterprise Guide to Investing by James A. Anderson (John Wiley & Sons Inc., $19.95). Each of these books covers the basics of stocks and mutual funds.
I would also encourage you to read the financial pages of your local newspaper and pick up the Wall Street Journal or Investor’s Business Daily. Start off slowly, but begin applying your book knowledge in the real world of investing, making sure you’ve grasped the concepts and principles presented in the books. You might also want to visit blackenterprise.com or www.fool.com (The Motley Fool) to pick up tips on investing. As you become more familiar with investing terms, your knowledge of investing should increase. In our November issue, we will cover this subject in “Investing 101,” the first part of a series on investing.