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Learning to Invest / Investing Beginners

URL:  https://boards.fool.com/i-have-1000-to-get-stsrted-but-given-the-cost-of-34094270.aspx

Subject:  Re: Limited funds Date:  12/28/2018  11:51 AM
Author:  TMFSandman Number:  29216 of 29343

I have $1000 to get stsrted but given the cost of some of these shares I would not get many shares which means growth would be limited, how do I get started?


Growth is not limited by the number of shares you can buy. If you make 10% one one share priced at $1,000 or 10% on ten shares priced at $100 each it's the same dollar amount to you. Different companies split their share counts up differently. Some have billions and billions of shares and relatively small per share stock prices (ex. Bank of America) and some have fewer shares with higher per share stock prices (ex. Amazon, Google).

Think of it as a pie. You can cut the pie into four large pieces or 16 small pieces. Eating one large piece of the four part pie is the same as eating four small pieces of the 16 part pie. You didn't get four times as much pie when you ate the four pieces of the 16 part pie.


Mike
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