101 Investing Tips
44) Don’t put more than 10% of your money into one company.
See number 43 and remember it.
45) Stock splits don’t make you richer.
If you have a pie and cut it in half, the two halves still only make one pie. Any stock split or dividend still gives you the same percentage ownership. What it does do is make the shares more affordable. Many times a novice investor thinks he should buy shares in an even hundred lot, called a round lot. With $2500 he can not buy a round lot of a $50 stock but can a $25 stock.
44) Don’t put more than 10% of your money into one company.
See number 43 and remember it.
45) Stock splits don’t make you richer.
If you have a pie and cut it in half, the two halves still only make one pie. Any stock split or dividend still gives you the same percentage ownership. What it does do is make the shares more affordable. Many times a novice investor thinks he should buy shares in an even hundred lot, called a round lot. With $2500 he can not buy a round lot of a $50 stock but can a $25 stock.
posted by Chip at 2:45 PM
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