"if I have 1c/share comm. than why would it be so impossible to trade NYSE 1-5 days and build it up? For ex. 10 share lots...or 20..." This is now possible with NASDAQ stocks only. A new rule implemented weeks or few months ago says that you can only open NYSE and AMEX position with round lots, even if you can sell an odd lot later. This because an odd lot very often has (had) an autoexecution, and they complained about too many traders taking advantage by this. :-(
Gepard, There is NO such rule about having to open NYSE/AMEX positions in round lots only. Think of someone wanting to invest in Bershire Hathaway, whose stock price is about $69,000/share. Do you really think the exchange would force someone to shell out $6,900,000 to open a round lot position? If this rule existed it would undermine the entire concept of free markets. There is a rule that states that orders under 100 shares will not be reflected as the inside market.
Mgregor, Actually you are right and wrong. There's no LAW or SEC rule stipulating this, but IB has an in house rule concerning listed stock purchases -- they must be made in round lots. In any case, forget the appeal to "free markets". The new 25K rules that the SEC has passed proved that "free markets" simply do not exist. Wet
Mgregor, I assumed from the original message we were talking about IB. That rule is software implemented, you cannot buy 10 shares of MU on Nyse, for example. I never tried to buy or short the stock you are mentioning, indeed....;-)
It is my understanding that IB's 100 minimum share rule only applies to trading QQQ and SPY, but I could be mistaken. I thought the original post was stating that a new SEC rule prohibits market participation in under 100 share trades, which of course is not the case.
Mgregor, No. IB's rule applies to any and all listed stocks. I wish it wasn't their rule, but it is. Wet