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Ask the Fool: The ins and outs of IPOs


Q: Do I need to work for a company to buy its stock? – L.A., Greenwood, S.C.
A: Not at all. Any of us can buy any stock that s publicly traded – as long as we can afford it. You ll probably need a brokerage account, though. (Learn more about brokerages at Broker.Fool.com.) However, if you work for a publicly traded company, you might be granted shares of stock or stock options, or you might be able to buy its shares at a discount.
Fool s School
Do You need a 529 plan? If you re saving money for educational expenses, you may want to look into 529 plans, which come in two key varieties: prepaid tuition plans and college savings plans. With prepaid tuition plans, you pay for all or some of the cost of college tuition, usually at an in-state public school, essentially locking in today s lower rates. (If the student decides to attend an out-of-state or private school, though, you may lose some of the value of the account.) ....

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Ask the Fool: What's a stock option strike price?


Since your options carry a strike price of $20, you re can buy up to 100 shares at $20 each – not their going price of $45. To exercise them all, you ll hand over $2,000 for 100 shares worth $4,500. You can hang on to them as long as you like, or quickly cash out for a $2,500 profit.
Of course, it s a little more complicated than that. There are tax issues to consider, for one thing, and company stock options do expire. Read your stock option plan s rules carefully, and consider seeking professional financial advice. Kaye A. Thomas book Consider Your Options: Get the Most From Your Equity Compensation (Fairmark Press, $24) may also be helpful. ....

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