info for stocks nasdaq nyse amex

Discussion in 'Stocks' started by HFT italy, Jul 1, 2016.

  1. Hello,

    I've never done trading on the stock market of the United States.

    I want to ask if I can buy a single share by company or in the USA there are regulations which require the purchase of a minimum lot size?


    example: buy 1 share of coke

    1 share of apple

    1 share of microsoft

    you can do it on these markets?

    thanks to those who want to help myself
     
  2. There no minimum number of shares restriction as of my knowledge. Yes, you may buy 1 share of AAPL or MSFT.

    The question is why would you buy just one share and pay commission on it? YOU want to diversify and you have not enough funds to buy adequate number of shares, check ETFs.

    Let's say you buy 1 share of a stock which cost $100 and pay $5 commission - you will have to give away 5% of your profit to a broker - only after that you will start making money...
     
  3. sprstpd

    sprstpd

    There are brokerages where you can trade for zero commissions, making these kind of strategies viable. For example, Robinhood (all the time) or Merrill Edge (assuming you have a minimum amount of money in your account).

    In fact, over the long run a zero commission low share strategy probably beats ETFs due to management fees.
     
  4. MrMuppet

    MrMuppet

    Hi Mr. HFT : )

    Yes you can buy 1 share as viktor said.

    Probably the biggest difference will be the cost structure.

    In the EU most brokers and ECN's charge a percentage of the $value of the deal.
    In the US everything is per share or per ticket.

    This means that in the EU it doesn't matter if you buy 1 share of a 100$ stock or 10 shares of a 10$, the commission is always the same.

    Per ticket is always the same price no matter how many shares you trade and per share...well I don't need to explain that^^

    HOWEVER:
    Regulations do not prohibit trading below 100 shares but some exchanges and order types require a 100 share lot, depending on weither you are retail or professional trader.

    As a retailer, it doesn't matter, your order won't reach the exchange anyways. If you trade at a prop shop or as a firm, you simply can't trade below 100 lots on NYSE for example (except for the exit)