Why Zacks? Learn to Be a Better Investor. Forgot Password. Stock brokerage firms typically charge the same commission regardless of how many shares of a stock you buy or sell in one transaction. That means maany smaller transactions, those fees represent a higher percentage of what you’re paying for the stock. Buying under shares can still be worthwhile, especially with today’s low fees, if you think you’re going to make enough money on the investment to cover the fees at buy-and-sell time. Although you may be interested in purchasing a small number of shares of an individual stock, it is important to assess whether or not the commission fees charged to you will still make the investment worthwhile. Historically, stockbrokers charged fairly hefty commissions on stock trades, which meant that buying and selling small amounts of stock often wasn’t worth it because the commissions would swallow a large part of your proceeds. Serious investors were said to purchase stock only in round lots — that is, buy their shares in round numbers aa by — and odd-lot investors buying in smaller quantities were taken less seriously. Today, many investors trade with online discount brokerages, and brokerage fees seemingly continue to decline. To determine for yourself if a small trade is worth it, you’ll want to look at your brokerage’s commission and the actual stock price. Other companies’ stock trades for as little as a penny, so buying 50 shares would only how many shares of a stock can make money you 50 cents.
