Home
Forums
New Posts
Illini Basketball
Illini Football
Sports Talk
Log in
Register
What's new
Menu
Log in
Register
Install the app
Install
Forums
General
Chat
Trading Stock/Investing
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="DaytonIllini" data-source="post: 907537"><p>Two quick thoughts. </p><p></p><p>Mutual funds are dangerous when bought toward year end. You often get socked with a tax liability for the newly invested money. So be careful with that. ETF's are safer to invest in than index mutual funds from that standpoint (later in the year). You do get hit with commissions on most ETF's though so if you are buying in small increments, you're probably better off with no load mutual funds even with the tax ramifications. </p><p></p><p>Two, I am not sure why someone looks at the absolute price of a stock when buying it. Why under $20? A company with a stock for $3 a share might still be wildly expensive. Another with a price of $450 a share might be very cheap. Is it because of commissions eating too much of your investment if you buy the more costly stock?</p><p></p><p>A $9 commission on a single share of a $450 stock is 2%. A $9 commission on 20 shares of a $22.50 stock is still 2%.</p></blockquote><p></p>
[QUOTE="DaytonIllini, post: 907537"] Two quick thoughts. Mutual funds are dangerous when bought toward year end. You often get socked with a tax liability for the newly invested money. So be careful with that. ETF's are safer to invest in than index mutual funds from that standpoint (later in the year). You do get hit with commissions on most ETF's though so if you are buying in small increments, you're probably better off with no load mutual funds even with the tax ramifications. Two, I am not sure why someone looks at the absolute price of a stock when buying it. Why under $20? A company with a stock for $3 a share might still be wildly expensive. Another with a price of $450 a share might be very cheap. Is it because of commissions eating too much of your investment if you buy the more costly stock? A $9 commission on a single share of a $450 stock is 2%. A $9 commission on 20 shares of a $22.50 stock is still 2%. [/QUOTE]
Verification
Post reply
Forums
General
Chat
Trading Stock/Investing
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…