City National Bank of Newark, N.J., is helping 650 inner-city children become shareholders as part of its efforts to build a profile in the community and encourage youngsters to invest.
The minority-owned bank is working with the Amelior Foundation, which is buying $300,000 of new City National securities and donating them to Ready Grants Inc. (Rigorous Educational Assistance for Deserving Youth Foundation Inc.) Ready will then allocate the shares to participating youngsters.
Diploma Needed to Collect
The investment is expected to return about 6% to the young investors, each of whom is expected to receive stock with a market value of about $500. Participants must graduate from high school before they can collect the package.
A major gaol of the Amelior Foundation is to create entrepreneurial opportunities for economically disadvantaged children and promote their appreciation of the benefits of owning property and businesses.
City National has agreed to hold seminars on investments and banking services for the participants and their families. The bank will also provide part-time summer employment for several Ready children interested in a career in banking.