Buy one share of stock? Go ahead. It's cheap
— -- Q: I don't have enough money to buy 100 shares of a stock. Does it make sense to buy just one share or should I save more money?
A: Investors too often fixate on how many shares of stock they plan to buy. Don't worry about it.
Thanks to low-to-no cost online brokerages, buying a single share of stock is economical and viable. If that's all you have to get started, don't worry about it. And don't think the broker will look down on your for just owning a single share of stock. After all, I don't think anyone feels bad for an investor who only owns one share of Berkshire Hathaway Class A shares, which sell for more than $100,000 apiece.
There are specialized services that sell one share, like Oneshare.com, but those are designed mainly for collectors and for gifts. You're looking to own a share of stock as an investment, so you're better off with an online brokerage firm.
Just look for a brokerage firm with low minimum account balance requirements and low commissions. Commissions are especially important to investors just starting out because even a $10 fee can eat into what you have to invest. A good place to start might be SmartMoney's most recent survey of all kinds of brokers.
Tomorrow: Buying shares for a child.
Matt Krantz is a financial markets reporter at USA TODAY. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com.
Trending Reader Picks
ABC News Live