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Buying a Share from a Broker


Finally, an investor could purchase a single share directly from a broker. The lowest of the low-commission discount brokers charge about $8.00 for an odd-lot trade (an odd-lot is less than 100 shares), which may make it a practical way to purchase a single share this way. You must first open an account with a brokerage firm, and they may require a minimum initial deposit.

If an investor has an account at a full-service brokerage, the broker may waive the minimum commission for a single share purchase; at least, it does not hurt to ask.

Another somewhat more-complicated alternative would be for four or five friends to get together and purchase five shares of a DRIP company from one of the group's existing brokerage account, thereby splitting the commission costs five ways. The actual purchaser would request that stock certificates be issued and then transfer one share to each of the other four. Beware, however, of the trend for brokers to charge for every service they provide, including for issuing stocks certificates; these charges can be $15 to $25.