Stupid question about stock trading

U

User50000

Okay, here's my stupid question...

A broker (like IB) will advertise that a stock can be traded for $0.01 per share. Based on this, I want to see if I'm right...

1) @9:00am, Dec. 1, Bought 500 shares of XYZ
Cost = $5.00 (500 shares * $0.01/share)
2) @10:00am, Dec. 1, Sold 500 shares of XZY
Cost = $5.00 (500 shares * $0.01/share)

Total cost (commissions) = $10.00

Is this correct?
 
Quote from H2O:

correct
More...

Okay, thanks. Here's another question...

Why don't brokers quote stock commissions in terms of total roundturn cost (cost of buying + cost of selling)? So, if a broker says that it cost $0.01/ share to trade a stock, why not just quote $0.02/share which is the total combined cost of entering and exiting the position?
 
Quote from Frontrunner:



Okay, thanks. Here's another question...

Why don't brokers quote stock commissions in terms of total roundturn cost (cost of buying + cost of selling)? So, if a broker says that it cost $0.01/ share to trade a stock, why not just quote $0.02/share which is the total combined cost of entering and exiting the position?
More...
Why would they do that? If a person can't figure out the true cost in his head within 1 second, I'm not so sure he/she should be trading.

-Fast
 
Quote from Frontrunner:



Okay, thanks. Here's another question...

Why don't brokers quote stock commissions in terms of total roundturn cost (cost of buying + cost of selling)? So, if a broker says that it cost $0.01/ share to trade a stock, why not just quote $0.02/share which is the total combined cost of entering and exiting the position?
More...

Well, believe it or not...some people still buy stock and actually hold on to it for a while....and by the time they sell it, it may cost 2 cents.....(weird concept however, but some investors are still out there)...

Don :p
 
Well, believe it or not...some people still buy stock and actually hold on to it for a while....and by the time they sell it, it may cost 2 cents.....(weird concept however, but some investors are still out there)...

Don


Tommorrow Don will tell us about the Chaulk boards!.
 
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