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Sharebuilder was an online brokerage platform designed to make stock market investing accessible and straightforward for individuals. In an era when traditional bank interest rates were often low, many people sought alternative ways to grow their money. Sharebuilder offered an easy entry point into the stock market, allowing investors to pursue potentially higher returns and achieve their financial goals.

What Was Sharebuilder?

Sharebuilder was known for simplifying stock market investment, removing many of the complexities that often deterred new investors. It provided a system that allowed individuals to invest in the stock market without facing common hurdles, aiming to make investing less intimidating for both beginners and experienced traders.

How Did Sharebuilder Investment Plans Work?

Sharebuilder offered investors flexibility in how they approached the stock market, primarily through two main types of investment plans:

• Automatic Investment Plan: This plan allowed investors to set up regular, pre-specified investments. A fixed amount of money would be invested at regular intervals (daily, weekly, or monthly) according to the investor's preference. The key benefit was convenience, as it automated the investment process, helping investors consistently accumulate shares over time without constant manual intervention.
• Real-Time Investment Plan: For those who preferred more active trading, Sharebuilder also offered real-time trading. This allowed individuals to buy and sell shares during market hours, giving them the freedom to make immediate decisions based on market movements.

Investors would provide instructions on the amount and frequency of their investments. Sharebuilder would then automatically execute these trades, accumulating shares in the investor's account. When an investor wished to access their funds, they could instruct Sharebuilder to sell specified shares, and the money would be deposited into their account.

What Were the Key Features of Sharebuilder?

Sharebuilder's appeal stemmed from several unique features designed to make investing user-friendly:

• Ease of Use: The platform was designed to be intuitive, making it suitable for both novice investors and those with more experience.
• Flexible Investment Options: The choice between automatic and real-time trading allowed investors to tailor their strategy to their comfort level and financial goals.
• Dollar-Cost Averaging Potential: The automatic investment plan naturally facilitated dollar-cost averaging, a strategy where consistent investments over time can help reduce the average cost per share.
• Expert Advice: Sharebuilder provided access to experts and stock analysts who offered free advice on investment strategies, helping account holders make informed decisions about when and where to invest for maximum potential returns.

How Did One Open an Account and Buy Stocks?

Before opening an account with Sharebuilder, individuals were encouraged to develop a clear investment plan. The platform offered various account types to suit different needs:

• Individual accounts
• Joint accounts
• Education savings accounts (e.g., to cover children's college expenses)
• Retirement-focused accounts (for earning money and potentially gaining tax deductions)

Funding a Sharebuilder account and purchasing stocks could be done in a couple of ways:

• Electronic Fund Transfer: Funds could be transferred directly from a savings account.
• Mailing a Check: Investors also had the option to mail a check to fund their account.

Once the account was funded, stocks could be purchased using either the automatic investment plan (buying equivalent dollar amounts of stocks monthly, weekly, or daily) or through real-time trades during market hours.

Was There a Minimum Investment Amount?

One of the appealing aspects of Sharebuilder was its accessibility regarding investment amounts. There was no strict minimum or maximum limitation for investing. Account holders could invest any amount they wished, even as little as four dollars, making it highly flexible for investors with varying budgets.

Frequently Asked Questions

What was the main benefit of using Sharebuilder?

The primary benefit of Sharebuilder was its ability to simplify stock market investment, making it accessible for a wide range of individuals, from beginners to experienced traders. It offered flexible investment plans and tools to help people grow their money without significant hassle.

Could you trade stocks in real-time with Sharebuilder?

Yes, Sharebuilder offered a real-time investment plan that allowed users to buy and sell stocks during market hours. This feature provided active traders with the freedom to make immediate decisions based on market conditions.

Did Sharebuilder offer investment advice?

Yes, Sharebuilder provided free investment advice from its experts and stock analysts. This guidance aimed to help investors make informed decisions about which shares to purchase and when, to maximize their potential returns.