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Is there a minimum amount of stock I am required to buy?

I am new to buying stock but anxious to get started.

asked by maalti (28)

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Tags:  finance  money  what is

answers

Depends on where you're buying the stock. It is possible to find places to only buy one share of stock, but some banks/brokers will require that you make a minimum purchase. It is completely up to you how much you spend! Do your homework on banks and brokers and find the one that suits your needs.

7 votes

Strictly, the minimum amount of stock is one unit. Suppliers might insist you buy in multiple units that suit them. This is pointless unless you can sell the stock on quickly. For each item of stock you purchase, you are effectively freezing money for a period of time with no interest. Which suits suppliers but not you.

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posted by bentham (154)
7 votes

The exact answer depends on the stock brokerage with which you are working. Usually the brokerage will require each transaction (purchase or sale) to be either a minumum number of shares or a minimum value. The brokerage may also require you to purchase stock in "even lots" where the total number of shares is a multiple of 100.

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posted by martin (422)
5 votes

Formerly stocks were only sold in major blocks, but with online trading services that's history. For most stocks on major exchanges you can buy 1 share if you like.

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posted by Zoso (847)
5 votes

You can buy a single share of stock. Some brokers will not handle very small orders, or the charge for making the trade could exceed the value of the stock, but there is no rule setting any minimum.

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posted by John (7873)
4 votes

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