What if you didn’t need a broker, or even a Scottrade account, to begin investing in the stock market? What if you wanted shares of Apple, Google, and Tesla (and you probably do), but the share price was a little out of reach?
Well, now you can be a part of these multibillion-dollar companies without needing to dish out thousands of dollars.
Even better is that to begin investing, all you need to do is create a free online account or pick up a gift card from your local grocery store. You’ve seen these cards before — usually near the register, and usually for restaurant chains like Outback Steakhouse or retail stores like Target.
It’s essentially the same, except one company decided to turn these gift cards into a way to participate in the market…
Instead of buying gift cards for various purchases, you can now buy gift cards that will translate into shares.
Buying a Stockpile gift card for Apple doesn’t mean money for purchasing apps or iTunes music. A $25 Stockpile card means you have just purchased $25 worth of Apple shares. Through Stockpile, you can purchase up to $1,000 in shares from hundreds of companies.
As a shareholder, the recipient will be entitled to receive any dividends announced by the company. The recipient also receives voting rights once she owns at least one whole share of stock
The recipient of the card will then own fractions of stock and have her own brokerage account through Stockpile Investments, which is insured for up to $500,000. Keep in mind that the card converts to stock upon activation — not purchase. If share price changes after purchase (which we all know can happen in the market), the portion of shares will be impacted.
Stockpile explains it as such:
For example, if the recipient redeems a $50 gift card on a day that the stock’s market on close price is $100, she will get 0.5 shares of stock. The value of the stock will go up and down with the market, so in our example, if the stock price goes up 10%, the recipient’s 0.5 shares will be worth $55.
The intended stock can also be changed. If you decide you just want the cash, the card can be converted to a traditional retail gift card instead.
Stockpile was founded to solve the complicated process of giving stock. A few years ago, the co-founder and CEO, Avi Lele, wanted to give his children, nieces, and nephews stock in their favorite brands for the holidays. It’s a worthy endeavor, and it’s always a good idea to get young people involved in (or at least knowledgeable of) the market. Unfortunately, this proved to be an incredible hassle.
But not anymore. Stockpile makes it possible to share ownership of a company by dollar amount — not number of shares.
Fortune favors the bold,
His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.