As with anything related to the stock market, it's hard for me to say how much you will make or how long it will take. I invested $500 in Kraft stocks. They are now worth about $714. I think I bought them about 6 months ago.
buy prospect capital. I rolled a small IRA into a new ROTH and just bout psec with it the last time it was down under $7.00 a share. It made a nice turnaround for me because the dividend yield is at least 10% and if you buy it at that price or lower, there is a good chance of it going back up over $10 relatively quickly. This is a higher risk/higher reward type stock, so I am only recommending this because you are talking about a small amount of money that won't crush your opportunities if it turns south.
I am assuming Prospect Capital is $PSEC on the NASDAQ. Looking quickly at my brokerage's research section: the share price has slid from ~$12 in late 2012 to ~$11.50 in early 2014, than rapidly down to its current ~$7.50 level. 52-week price performance is -31%. Yes the P/E is 8 and the dividend yield is ~13.5% but how can this small cap company afford to continue paying such an extraordinary dividend amount? For the last 4 quarters, EPS growth is -24%, total debt to equity is 80% and the payout ratio is 108%. Analyst ratings are very bearish. What am I not seeing for a recovery to ~$10 as you suggest? Just asking... curious.
A question to ask yourself is how much do you have saved up? if you don't have some extras cash to pay for unexpected expenses, such as a car or health issues, I'd suggest that as the best investment for now. I've read from a few sources that 6 months security is a decent amount. From there, it's easier to place your money where it will do something for you, rather than collect dust in the bank. Age and financial status can also determine how aggressive or conservative you want to be when handling stocks. Talking to an adviser would definitely be a safe bet!
