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Step 1
Introduce the idea of forming an investment club to people you know who have expressed interest in following the stock or bond markets.
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Step 2
Agree on common goals for the group. Members who are involved for social or educational reasons may not mix well with serious investors.
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Step 3
Agree on the level of financial commitment members will make. A large monthly contribution may eliminate members over the long run. Small investments may frustrate investors who want to commit large amounts of cash in hopes of seeing a larger return.
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Step 1
Write an agreement for how the group will be conducted. A bank or brokerage firm will require Articles of Incorporation or a Partnership Agreement when setting up an account.
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Step 2
Develop the appropriate type of agreement based on how you want to file for taxes at year end.
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Step 3
Record when and how often the group will meet.
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Step 4
List the necessary roles for operating the group such as a president to conduct meetings, secretary to keep notes, treasurer to deposit dues and an investor to place buy and sell orders and monitor investments.
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Step 5
Record an initial membership contribution and ongoing dues.
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Step 6
Determine how the club will manage payouts, divestiture or dissolution.
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Step 7
List requirements for gaining new members once the club has started.
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Step 8
Obtain signatures from all members on the agreement.
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Step 1
Appoint individuals to roles outlined in the operating agreement.
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Step 2
Open a brokerage or bank account and either subscribe to an online investment service or obtain a broker.
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Step 3
Summarize the preceding meeting and an agenda for the current meeting.
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Step 4
Review club financials. Include overall gains or losses, individual investment progress and cash balance available for investment.
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Step 5
Present investment ideas and determine if the club wants to buy, sell or further research an idea.
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Step 6
Close each meeting with the agenda, date, time and place for the next meeting.







