1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
for instance if a brokerage firm charges $ 20 per trade i e for stocks under $ 20 and up to 100 shares and an investor purchases one share called an odd lot of abc for $ 10 per share then the total cost would be $ 30 per share the cost of the commission plus the cost of the one abc shareottom line the smallest number of shares you can buy is one share however due to commission costs and liquidity issues it is typically not feasible to do so for more information check out our stock basics tutorial