Newbie question

[buyw...@hotmail.com]

I am totally new to buying stocks.

I am interested in buying some HBC share listed on NYSE. It is in the
form of ADRs and is currently trading at around US$93.... my question
is: how do I find out what is the minimum amount (or do they call it
'lot') people trade ? I can only afford a few hundred share, so if one
lot is 1000 share does that mean I cannot afford to play this stock ?
In that case can I buy from the bank (HSBC) directly ?

Thanks.

[PeterL]

The minimum amount is one share usually. Ask your broker to make
sure. The concept of a round lot (100 shares) is no longer
applicable.

BTW, don't "play" the stock market. Buy good companies at reasonable
prices and hold for long term.

[buyw...@hotmail.com]

Thank you PeterL for answering my question. I will be using a discount
broker... haven't decide on which one though. My other question if you
don't mind: is the commission charge by the broker works on a 'per
deal' basis and is the same no matter I am buying 1000 or 50 shares ?

[Lubow]

OK... couple of terms you should get to know. A *round lot" is the
quantity that gets traded in a stock exchange. There are exceptions,
but most of the time a round lot on the NYSE is 100 shares. Anything
smaller than a round lot is called an "odd lot."

The other terms you need to know are "market orders" and "limit
orders." A market order means you are willing to pay the "asked"
price when purchasing or the "bid" price when selling. The asked
price is the lowest price an owner of the stock is willing to take for
his/her stock. The bid price is the highest price a buyer is willing
to pay for your stock. If you trade online you will see the current
bid and asked prices. If you order via telephone, the broker will
give you the current b/a prices.

A limit order means you are setting the maximum price for which you
are willing to pay for the stock or the lowest price you will accept
for selling your stock. Sometimes, a limit order is called "Or
Better." In other words, for example you may tell your borker, "Buy
10 HBC at 93 or better."

Now, getting back to what you want to do:

Many years ago, there used to be an additional fee for ordering a
quantity smaller than a round lot. That no longer exists. Just tell
your broker you want a specified number of shares at a limit price or
at the market, even if it is for one share. The downside is that you
may not get the best price for an odd lot that is for fewer than 100
shares, but that disadvantage should not amount to anything greater
than $5 or so.

-- Lubow

[buyw...@hotmail.com]

I learn a lot from your post Lubow.... thanks very much!

[PeterL]

On Aug 3, 9:42 am, buywhe...@hotmail.com wrote:
> Thank you PeterL for answering my question. I will be using a discount
> broker... haven't decide on which one though. My other question if you
> don't mind: is the commission charge by the broker works on a 'per
> deal' basis and is the same no matter I am buying 1000 or 50 shares ?

My broker charges $9.95 for trades of 1 to 5,000 shares.

>
> On Aug 3, 12:34 pm, PeterL <po.n...@gmail.com> wrote:
>
>
>
> > On Aug 3, 9:17 am, buywhe...@hotmail.com wrote:
>
> > > I am totally new to buying stocks.
>
> > > I am interested in buying some HBC share listed on NYSE. It is in the
> > > form of ADRs and is currently trading at around US$93.... my question
> > > is: how do I find out what is the minimum amount (or do they call it
> > > 'lot') people trade ? I can only afford a few hundred share, so if one
> > > lot is 1000 share does that mean I cannot afford to play this stock ?
> > > In that case can I buy from the bank (HSBC) directly ?
>
> > > Thanks.
>
> > The minimum amount is one share usually. Ask your broker to make
> > sure. The concept of a round lot (100 shares) is no longer
> > applicable.
>
> > BTW, don't "play" the stock market. Buy good companies at reasonable

> > prices and hold for long term.- Hide quoted text -
>
> - Show quoted text -

[lubow]

>I learn a lot from your post Lubow.... thanks very much!
>

Thank you, young man. You are almost on your way. Here's the book to get
and it's dirt cheap. It's the Louis C. Engel book How to Buy Stocks.
http://www.amazon.com/s/ref=nb_ss_b/102-7140972-4876969?initialSearch=1&url=search-alias%3Dstripbooks&field-keywords=how+to+buy+stocks&Go.x=11&Go.y=9&Go=Go

That's the first book I read on the stock market.. Hopefully it will lead to
a lifetime of sound investing.

--
Lubow

[com...@webtv.net]

also, SOMETIMES it might take a few minutes longer to sell an "odd lot"
especially for the lower priced stocks.

" YOU ARE EITHER WITH US, OR AGAINST US "

[2Penny]

Dude:

HBC is topping out.... which means, it will start heading south...
unless you are prepping your money to short it.. notice how the stock
broke the 50 day moving average on heavy volume. This is pretty much a
call for short sellers to jump on the bandwagon....

Mrs. 2Penny