On Sun, Jun 01, 2003 at 11:42:20AM -0500, Julia Thompson wrote: > Brokers prefer to work with bigger blocks.
I've seen little evidence of this in the past 5 years. What do brokers care about whether you buy 1 share or 100 or 1000? They've got their commission schedules set up to make money either way, and they've got their computers and their trading desks set up to handle small or large trades. Berkshire Hathaway trades at $71,000 per share, obviously not many people are going to be buying 100 shares or more of that. Even the B shares are $2,374 each. Most of the evidence that I've seen for share pricing is that there is a slight disklike for shares below $10 (some institutional investors are prohibited from buying them), and maybe a trade on my online broker executes a couple seconds faster if it is an even multiple of 100 shares (probably because if you are an institutional investor, you place and order for, say 60,000 shares instead of 63,738), but this is of little importance. Maybe it makes the specialist's job slightly easier, but it also reduces the number of transactions so I guess the specialist would be neutral on the matter. -- "Erik Reuter" <[EMAIL PROTECTED]> http://www.erikreuter.net/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
