A.I.M. Users Bulletin Board

[SFSecurity]

Hi Toofuzzy, You ask:

What is the difference between trading a percentage of shares or percentage of stock value?

Nothing, I got side tracked from the real issue, minimum $ trade size and didn't use the correct labeling, sorry

Say you have 500 shares of a $7 stock. 10% of shares is 50, but if you set a minimum $ trade size of $500 to keep commission costs down you will not be able to trade 10% of shares as that would only be $350. Your would have to trade about 72 shares or about 14%.

However if you had 1000 shares of that $7 stock then 10% of share would dominate a minimum $500 trade size as 10% of shares would be $700.

This is more important on lower price stocks, like the Pocket Change Portfolio, or smaller holdings like I have in the trust accounts or my inherited IRA. The other area where it might be important is LD-AIM, not sure as I haven't played with it enough.

Best,

Allen