Can I Purchase 1 Share of Stock?

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One share of stock can be purchased, but it's important to remember what the additional expenses may cost. Find out how to buy single shares of stock on a consistent basis with help from a portfolio manager in this free video on personal finance and money management.

Part of the Video Series: Stocks & Bonds
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Video Transcript

Okay, can I buy one share of stock? Absolutely, you can buy one share of stock. The the key thing to be knowledgeable about is is what you are going to pay in expenses, because whether you do it through a brokerage house which would probably be the most expensive way to do it, or online which would be maybe the next step, or directly with the company there will be a fee involved. Could be, you know, many, many dollars, could be all the way down to maybe one or two dollars; depending on the company. So, buying a single share means that you've taken expenses up front. For example, it costs you ten dollars to buy the a thirty dollar share. You've got your share that's worth thirty dollars. You've spent ten dollars already. You need to get the stock up to forty dollars just to break even, to get your money back. But, also be, you know, know that when you sell the share you are also going to have to pay that fee again. So, the best thing to do if you're going to buy a single share is to buy them on a consistent basis, either weekly or monthly. If you do that through a direct program with a company they'll charge you probably the least amount of money, and that would be a direct stock purchase plan. And you would just go to one of their websites, or write to the company and they'll give you all the information on how you can do that. And you can buy one share every now and then, as you're comfortable doing.

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