How to Invest in Pre-Paid Legal Stocks

by Tina Amo

Pre-Paid Legal Services, Inc., provides insurance for limited legal services from member legal firms at relatively low rates. Harland Stonecipher created the company after an accident that left him with costly legal fees. Pre-Paid Legal grew from its modest beginnings into a formidable company that offers services in over 48 states to over 1.5 million members. Pre-Paid Legal stocks began to trade on the New York Stock Exchange on May 13, 1999, after earlier trading on the American Stock Exchange and the NASDAQ.

1. Research Pre-Paid Legal to learn as much as possible about its performance over the years. For instance, examine the company’s SEC filings and financial reports. The pieces of information can provide insight about future performance of the company and its stock, which is helpful in making a more informed investment decision. Many investment websites provide in-depth information about the history of stock performance for various companies.

2. Set up a trading account online with a stock brokerage firm. This is ideal for investors who wish to have complete control of investments and can devote the time required to monitor the market. Investors who prefer some investment guidance can hire professional stockbrokers.

3. Check the current price of Pre-Paid Legal stock. The price and your budget may determine the number of stocks you can purchase at the initial trade. The symbol for Pre-Paid Legal stock is PPD.

4. Place a trade for the number of stocks you wish to purchase at the current price. Investors can set a limit order to purchase Pre-Paid Legal stock at a specific price. Brokers charge a fee for every transaction and require a minimum balance. The fee is typically modest when trading online.

5. Stay informed. Watch for news from Pre-Paid Legal that may affect the value of your investment positively or negatively. It is important to know when to sell.

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