Being looped into the national organization provides the local clubs with a built-in set of tried and proven rules and regulations, as well as access to investor training materials such as videos, slide shows and online support. Club members typically meet once a month to discuss companies and make decisions about which stocks to buy and sell. At meetings they each contribute a small sum of money that is deposited into a joint account. Members take turns researching and reporting on promising companies in which they might invest. Rayome says the most important part of the club is the education.
Most members make use of the expertise of brokerage firms when managing their personal investments.
But the investment clubs, they say, help them learn more about investing, so they can make more informed decisions on their own about where their money is going. Debbra O'Hara hooked up with the Roadrunners four years ago. As I began to learn more about investing, I really threw myself into it. Now she helps teach others what she's learned during club meetings. For O'Hara, the club has helped her develop a greater understanding of investing, the terminology used by brokers and the options she has available to her.