Most investment clubs are not required to register with the US Securities and Exchange Commission, but it’s worth checking two federal laws namely the Securities Act of 1933 and the Investment Company Act of 1940. You may also check out some laws of your state under the office of the state securities regulator. The National Association of Investors Corporation is also an excellent resource for the creation and maintaining of investment club.
Lastly, it is not necessary to create an investment club that requires actual purchase of stocks. In fact, an investment club that serves as an educational club for would-be investors can be created and similarly members may also pool their resources for the benefit of learning together while any purchase of stock is left at the discretion of individual club members. The best benefit derived from joining any type of investment club is the learning gained from conducted studies and researches onto what types of investments are feasible and what are not.
If you are an investment beginner and are looking for ways to invest, increase your investing knowledge or buying power and want to gain some friends along the way, then an investment club could just be the thing to help you get started towards a successful investing future.