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Do Understand This ...

Posted by Jay J -Moderator on March 29th, 2001 08:32 AM
In reply to A little off topic but, very nice product - great information by Ed on March 28th, 2001 05:03 PM [Go to top of thread]

IF you (whoever 'you' may be) plan on buying some shares for gifts, you do pay a premium vs. buying them in 'lots' of 100. Yes, today one can buy just 1 share but at that 'rate', it's VERY costly. I did think about doing this as a Novelty myself. The novelty wore off when I found it much more economical to buy like 50 shares, and be done w/it all at once. Granted, I bought them for my daughter when she was 13 months old with the $$$ she got from her Christening, Christmas, Birthday, and such. And when she grows up to be a Teenager, she'll see how her 2-Grand turned into (hopefully) triple or quadruple that much. This, among other ways (in due time), is how I/we will show her the value of a $1.00 and what it means to save and/or invest. I just wished my folks had done the same for me at 13 months old!

Oh, do check out the FEE (even at today's rate) that it would cost to cash in that 1 share. At my Brokerage House, it's $26 for 1 share or 100 shares. If the Holder has 1 share, that $26 is a BIG chunk of change! For example, Walt Disney (DIS) is about $28 a share. If it costs $26 to cash in, so goes your 'return on investment'!!! Of course, if the 1 share is a TOTAL novelty, then DIS will be the TOTAL benefactor.

No one asked but do your 'kids' or 'little relatives' a favor. POOL some $$$ with OTHER family members and buy a BUNCH of the stock. $25 from 10 people = $250. That's just under 10 shares of DIS at today's price. It makes the 'trade-in fee' all the easier to ignore. Just my thoughts.

Jay J -Moderator

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