If you have always wanted to dabble in the stock market, and you do not want to invest too much money at a time, or you just want one stock of a company to say that you share ownership in something, then here is how to purchase one share of stock.
Working With Online Brokerage Firms
Look for an online brokerage firm that does not require a high minimum balance, and keeps the fees manageable. An investment is an investment, so the number of shares does not really matter. Some firms are no cost, so keep an eye out for these companies.
Once you have located the brokerage firm or specialty service you plan to use, determine the company you want to invest in based on the budget you have for the purchase. Online brokers will be the cheaper option as they will only charge a per trade fee (varies on the firm you use) based on the number of shares you purchase at once, not per share. Because you are only buying one share you face cost of share plus trade fee. A $25 share could be anyway from $32 to $45 depending on the trade fee.
Online brokers will mandate different requirements for opening an account and maintaining the account. Open the account with the firm that best suits your needs, your situation, and your goals as a beginning investor. Fill in any required forms to ensure the accurate and complete purchase of the stock.
Speciality Services: One Stock Investments with a Unique Presentation
A speciality service will allow the purchase of one stock in the same sense of investment amount, and income return. However, because these are meant to decorate and commemorate the stock or the ownership as a gift, keepsake, or collectible, they are not recommended for the investor just getting a start.
Specialty services will charge for the special certificates, the frame, an optional engraving, etc. along with a transfer fee that will range anywhere from $35-45. Add in S&H charges, and a $25 share quickly becomes $75 or more depending on the frame you choose.
Speciality services will ask you for the stock ownership information, and other information necessary to process, ship, and bill you for your order.
Trade Fees are per trade, regardless of the actual number of shares purchased in the trade. Trade fees will vary depending on brokerage used, account type, and any specials the firm may be running. One share is the worst for the trade fee, but worth it if you cannot afford more shares.
Compare several brokers and/or speciality services to maximize your budget, and to be sure you are not missing a better deal!