| If you take a close look at any organized group then | | | | should be designed for short-term use. Many |
| you will realize that there are certain rules, and | | | | investment clubs have made the mistake of putting |
| maybe even a constitution, in place to govern the | | | | end dates on contracts and agreements and have |
| behavior of the group itself and its members. This | | | | ended up embroiled in legal battles. Make sure that |
| applies to youth groups, entertainment groups and | | | | you are all committing to the contract indefinitely. |
| any other type of group you can think of. However, | | | | The most important investment clubs rules should |
| if you are considering starting or joining an | | | | regard the way in which you plan to invest as well as |
| investment club then the rules you are to operate | | | | the percentage of profits that you will receive. Some |
| within should be more stringent than most. | | | | investment clubs pay their members a percentage |
| Investment club rules and an organizations structure | | | | and reinvest he remainder every year but it is down |
| will ultimately bring success, but exactly what rules | | | | to you and your fellow members to discuss whether |
| should you have in place? | | | | this is to happen with your club or not. Your common |
| When you are considering investment club rules, it is | | | | investing goals should be the same and be clearly |
| important to remember that you are in the market | | | | outlined so you have a document to refer back to |
| for the long haul because of your investor status. | | | | should the need arise. |
| Investors aim to make money over a long period of | | | | Furthermore, any roles that are active within your |
| time from their investments so it is important for | | | | club, such as treasurer, should be outlined in the |
| you to commit to any investment club rules for an | | | | investment club rules, preferably with a member |
| indefinite period of time. As such, none of your rules | | | | nominated in those roles to avoid arguments. |