I want to help my nephew start investing by purchasing a single share of stock. How do I purchase just 1 share

Question

He loves Apple Computer and Pixar. I thought Apple would be a great company for him to start investing. I just want to add a share or so at a time. Yes, I know the transaction fees will be costly if I go through a traditional brokerage firm but is there a way to buy single shares at a reasonable cost?

Answer 1

ABSOLUTELY

Try this Yahoo!Finance article at http://biz.yahoo.com/edu/ds/ir_ds2.ir.html.


I think if you have AAPL shares in your accout, you can transfer just 1 share into your nephew's name, and get a share certificate etc...

Got to SHAREBUILDER and explore the site and this is good place to start...you can even get a share certificate just for 1 share and give it as a gift ( Frame it ofcourse ).

The URL is http://www.sharebuilder.com/sharebuilder/Index.asp

Answer 2

The lowest cost is $7.00 USD per share at Scottrade and you will have to pay another $7.00 USD when you sell it.

Therefore if you buy a share for $140.00 it would have to go up 10% just to pay for the comission.

It makes no economic sense to buy a share.

There is no Pixar shares.
If you want Pixar you need to buy the Walt Disney Company.

You can get 5% per year parking your money in a savings account.

If you want to invest in shares you are expecting a return on your investment higher than 5% and if you have to wait for a stock to go up 15% then you are never going to make any money in the Stock Market. The comissions will eat you alive.

I suggest you to buy at least $350.00 each time you buy shares for your nephew.

That way your stock has to go up only 4% to pay for the comissions.

Not exactly the best investment you can make but you will make some money.

If you can invest $700.00 then you only need to wait 2% and if you invest $1400.00 then you only need to wait 1%

I don't know how money are you giving to your nephew but if you want to send him to Harvard you would need at least $250,000.00 which you would easily get if you invest $25,000.00

Asuming you buy him $1400.00 each month in Apple you will get $25,000.00 in just a couple of years.

NOTE: YOU MUST NEVER INVEST ALL YOUR MONEY IN JUST ONE STOCK.

If you invest in Apple and Disney you could buy Apple one month and Disney the next month.

It's not exactly the best investment to buy just two shares but it's better than one.

If you have questions you can drop me a line.

Top 3 Answerer in Business & Finance. (Vote for me)

Answer 3

www.tradingdirect.com Its free to start and $9.99 per trade. I think you can request a stock certificate from them once you purchace it.

Answer 4

yes