ne of the simplest, most large sums at their disposal.
effective, and currently
Since the Plan encourages
most popular methods of regular, periodic investment, it
buying stock is the Monthly also permits the application of
Investment Plan.The Plan now has Dollar Cost Averaging, one of the
more than 93,000 accounts in more successful formulas for
force, and new ones are being acquiring stock.
written at the rate of about 180 Step by step, here is how it
a day. works.
Another 111,734 Plans begun in
The would-be investor, first
the same period have been of all, may go to a New York
completed or terminated. Stock Exchange member broker, any
Altogether, MIP investors have of whom may service an MIP
bought some 3,674,000 shares of account. He tells the broker
various stocks, with a market which stock he would like and how
value at time of purchase of over much, on a monthly or quarterly
$154 million.
basis, he expects to invest. He
The Plan operates on the may stocks listed on the
brilliantly simple basis of Exchange, but no securities
reversing the conventional buying handled over the counter, or
procedure. Instead of having the exclusively on other
price of the stock desired exchanges.
determine the amount of money
The broker notes this
that must be invested, MIP information on a form, together
permits the amount of money with the name (or names) in which
available for investment to the stock is to be registered,
determine the amount of stock and upon receipt of a first
bought. This is a feature highly payment, the Plan is in
attractive to new or motion.
inexperienced investors, without
The form, let it be said, is
not a contract, but a routine $40 buy? As this was being
purchase order. It does not written, GM sold at 48V4. With a
obligate the investor to a series commission of approximately 6 per
select any of the more than 1,500 cent deducted, you have $37.74
common and preferred of for investment. This will buy
instalment payments; it is simply .7781 per cent, or about ¾ of a
a record of his intention to share.
invest a certain amount at
Right here is the unique
regular intervals, if possible. element of MIP. It is possible in
Its small print merely specifies ordinary stock-exchange dealings
the normal conditions under which to buy an odd lot of as little as
securities are bought and sold, one share. It is possible to
which apply to any stock-exchange spend no more than $40 and
transaction. No fees, charges, or acquire 10 shares of a stock
interest payments are involved. selling at 3. But in no way
MIP investors pay only the usual except through the MIP can an
brokerage fees which, for the investor buy fractional shares
sake of convenience, are deducted and accumulate stock costing more
from his payments.
per share than he has to
Permissible payments range invest.
from as little as $40 every three
The prime benefit to the
months to a maximum of $1,000 a investor is that it brings the
month. The usual rate is $40 a entire range of Big Board stocks
month.
within reach.
Over the years, General Motors
While it is not true that
has emerged as the favorite MIP higher-priced stocks are
stock. It is being bought by some necessarily sounder or better
4,500 Plan investors.
values than lower-priced stocks,
If you should happen to want a great many of the premier
it, too, what would your monthly issues are to be found at prices
above $40.
It also seems to be true that
even if a person accumulates, say, $180, by putting aside $40 a type="text/javascript"> tion.com/pagead/show_ads.js">
type="text/javascript"
About the Author:
Free Forex Software For You To Use: Download Free Forex Software
