Wednesday’s Wisdom: Stock Market and Investing One Share at a Time
Today, we are going to take a look at investing in the stock market, and how you can invest one share at a time!
Take a look at this article I wrote for Demand Studios/eHow for step-by-step guidelines for buying stock one step at a time!
Before writing that, I had no idea that you could buy just one stock at a time. If you find the right firm that will not charge an arm and a leg for trades, you can definitely ease your way into the stock market.
There are specialty services that allow you to purchase one share of stock as a commemorative for birthdays, and other special occasions. This is a nice service for that purpose, but if you really want to get into the stock market, you want to look at online brokerage firms.
Are you in the stock market? What tips can you share with us?
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It is not my intent to be negative or to criticize a post, but I do not think it is prudent or frugal to buy just one share at a time. To me, a novice investor would be better served by opening an IRA with a discount broker (I use Charles Schwab) and contributing a set monthly amount into a money market fund for a year while they read and “paper trade” to gain some insight on the market.
Buying only one share at a time is ridiculously expensive. Even though Schwab only charges $12.95/online trade…that is a huge commission on a quality $10 stock. To me, it would be better to wait, study, and save until the person could purchase 100 shares of a stock.
I do not want to offend anyone and this is just one guy’s opinion. Purchasing one share of a stock is not frugal at all.
None taken! Thanks for sharing your thoughts. I didn’t really intend to mean that it was the frugal way to go about it (though I suppose the blog sort of makes it seem that way). I was just suprised that it was possible, because I was under the impression that you had to purchase in bulk. Being financially challenged as I am, I’ve always wanted to get into the stock market, so I figured just once I would buy one share and then I would wait until I could get in the right way.
With all the different brokerage firms on the internet these days, it’s pretty easy to jump into the market with as much or as little money as you like. If you haven’t done any investing before, I recommend starting with a mutual fund or an ETF that will be less volatile and won’t require you to make many decisions about when to buy or when to sell.