Wall Street on $20 a Month

There are 112,230 members of the National Association of Investment Clubs, proving that investment clubs are not a flash phenomenon but a smart way to pool brains and money as well as a force to be reckoned with in the market. Phyllis A. Humphrey started her own club in 1972 and has posted a better track record than most leading investment advisers. She has become an investment club consultant and a minor media celebrity.

WALL STREET ON $20 A MONTH explains the advantages of joining a club. By pooling their money, small investors can get better commission rates on buy and sell orders. They also receive more attention from brokers, which can lead to profitable tips. By pooling their brain power, members can analyze more potential investments and keep better tabs on their joint portfolio.

Because members share a common financial bond, they are more likely to form close relationships than people who only meet for chitchat, so investment clubs have always been a popular way to broaden social horizons.

The book contains most of the facts and forms needed to start an investment club, including a sample partnership agreement and rules of order. In addition, it provides a complete introduction to the stock market, with Wall Street jargon explained in simple terms.

This smart, friendly writer does not promise miracles but makes a very persuasive presentation of her thesis that the conservative small investor would be wise to join an investment club, both for fun and for profit.