I am interested in buying some stock but at its current market price they are a little pricy....is there a penalty to buying a company's stock in amounts of 50 or in other amounts like say 32 shares?
2007-01-25 01:17:42 · 6 answers · asked by Kelly P 1 in Business & Finance ➔ Investing
There is no penalty, though you may be charged a higher commission by your broker for buying an odd lot (less than 100 shares).
2007-01-25 01:26:59 · answer #1 · answered by CottSD 2 · 0⤊ 0⤋
Jeb's got the right answer. I'm with Schwab and the cost per trade is $9.95. Per trade. One share or 100 shares. Same fee. No penalty. Used to be different in the "olde days" with full service brokers and all that, but now, buy what you can afford. Further, with on-line trading I can tell you from personal experience that the trade happens just as quickly for odd lots as full lots. Go for it.
2007-01-28 19:22:59 · answer #2 · answered by ZORCH 6 · 1⤊ 0⤋
Yes it is called and odd lot fee. It all depends on the price of the stock try to buy in 100 share lots.
2007-01-25 02:31:57 · answer #3 · answered by ? 6 · 0⤊ 0⤋
Not with Fidelity, I'll trade small lots in my daughters' IRA's every so often...no extra charge... The only thing you'd want to watch is your normal trading fee...if it's $ 10.00 and you only buy 20 shares of something, you've just added 50 cents to the price of that stock ( not earth-shattering, but just something to consider)
2007-01-25 05:37:27 · answer #4 · answered by jebediabartlett 6 · 1⤊ 0⤋
Your broker may impose one, but there is no problem in buying in other than round lots. Remember, however, that the fewer shares you buy, the higher percentage your broker's fees will eat up.
2007-01-25 01:22:19 · answer #5 · answered by Steve H 5 · 0⤊ 0⤋
No.
2007-01-25 03:33:11 · answer #6 · answered by Anonymous · 0⤊ 1⤋