Advertisement
Historically, it was easier for brokers to trade stocks in multiples of 100, which are called round lots, or board lots.
Years ago, you needed to buy shares in multiples of 100. Is this still the case? Are there any difficulties in buying, say, 33 shares of a company?
—Dave Hook, Mississauga, Ont.
You can buy as many or few shares as you like. Historically, it was easier for brokers to trade in multiples of 100, which are called round lots, or board lots. But today, unless a stock is highly illiquid, you should never have a problem with “odd lots.”
That said, it rarely makes sense to buy a small number of shares. At most brokerages, the cost to trade 33 shares or 300 shares is the same (often as little as $10), but that commission represents a much smaller percentage of the 300-share order, explains Jordan Zinberg, vice-president at Donville Kent Asset Management in Toronto.
For example, if you buy 33 shares of a company trading at $20 per share, a $10 commission adds 1.5% to the price. “I think you have to think long and hard if you’re only able to buy just a few shares in something,” Zinberg says. He suggests having at least $5,000 before investing in an individual stock—otherwise it’s probably not worth your while.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
The Trump effect and Trumponomics, Shopify’s huge earnings beat, it’s sunny days for Suncor shareholders and more.
Here’s how to get your free ticket to attend two MoneyShow virtual expos.
Should you be paid as a power of attorney? Learn about the compensation rules in Ontario and how to...
The oilsands giant will return all excess cash to shareholders after hitting debt target early.
You started investing in your 20s, and you feel pretty good about doing it. But now what? Consider impact...
Shopify reports third-quarter net income of USD$828 million, and its executives aren’t concerned about how Trump’s election win will...
Here are the best accounts to hold your savings and investments.
Want an idea of how much tax you paid—or will be paying—for 2024? Here are the federal and provincial...
