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Young People Jumping into Stock Market for First Time amid Downturn

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Young people are trying to make it rich in the stock market amid the COVID-19 pandemic and economic downturn. Online brokerages are seeing record increases in new accounts and in trading activity. Many are from millennials and Gen Zers who are starting from scratch, with no background in stocks. However, they’ve been enticed by zero fees and easy access via smartphone apps from companies like TD Ameritrade and E*Trade. Michael Smith, President, and Co-founder of STA Wealth Management says it’s great to have so many new people in the market. He has a warning for newbies, though, in light of the economy: not every company is going to make it. “The common stockholders can get taken out. The bondholders stay protected. So, bankruptcies will affect and can wipe out the stockholders,” Smith said. Smith also urges young people to make sure they’re learning about stocks (and getting stock advice) from a trusted source.

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