Some investors buy stocks to create a growing passive income stream, or a dividend growth strategy. The idea is simple and works, and many real-life stories exist of people building wealth from equities.
In the past, an investor had to deal with a broker who placed a buy or sell order. Today, orders are placed directly by the investor online. Therefore, a person should start the process by selecting an online broker and creating an account.
A gold standard amongst beginner investing books is one of the three Peter Lynch books. He educates people on picking stocks, choosing from different stocks, when to buy stocks, and when to sell stocks.
A prudent investor does not place all their money in a single stock. Instead, it is better to diversify in a handful of stocks and grow the number over time. Putting all your money in one stock subjects you to single stock risks. Diversification helps reduce that risk.