There are about 3,500 publicly traded companies listed on U.S. stock exchanges. That is an overwhelming amount of choice for investors. Picking the right stocks to invest in and use to build a sound portfolio can be a daunting task. This is especially true for people who are new to investing. However, there are a few rules that can help identify stocks to buy for beginners, and help new investors make overall smart choices. These rules include “buy what you know” — or pick stocks of...

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