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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27547  
Subject: Re: brand new investor! please help! Date: 8/11/2014 1:19 PM
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Most discount brokers will do a stock transaction for you for a commission of abt $8. You probably want the commission less than say 2%. So your minimum purchase should be abt $400--unless you can come up with a lower commission strategy.

Most would collect the $100 some place that pays interest and then make investments when you have the $400 together. Brokers will usually accept the payments and put them in money markets until you decide to invest. Money market yields are low these days. So far no one has come up with something better. If you use the broker account, you can also accumulate dividends paid there and then combine them with your next purchase to reinvest them.

Some alternatives to consider. 1) Dividend reinvestment can be set up to let you buy more shares of the same stocks at regular intervals. Company plans often split the commission paid for their purchases between all participants giving you very low commission costs.

2) Mutual fund companies likely will accept regular $100 contributions for mutual fund purchases. Some will even arrange automatic transfers from your checking account.

As to share price, don't worry about it. A few stocks have very high prices but most are well below $400 per share. So focus on the future potential of the company regardless of stock price. One share of a good company is plenty.
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