koch@elgar.DEC (Kevin Koch LTN1-2/B17 DTN229-6274) (03/27/85)
> I don't know where you are buying your stocks and bonds but the rates you > quote are out of sight. The only way you would pay 2-5% on stock commissions > is if you make odd lot purchases and deal with a full service broker. Even > a full service broker wouldn't charge that much for 100 share lots. Here is a somewhat out of date distillation of Merrill Lynch's commission schedule for stocks. What I have done is compute how much the original stock has to go up in order to break even on a 'round trip' (i.e. buy and sell the stock). You'll see that the lower the price of the stock, the higher the commission, when expressed as a percentage of the stock price. The extremes are 11% for a $1 stock and .92% for a $100 stock. AMOUNT STOCK MUST GO UP TO BREAK EVEN SHARE PRICE BUY/SELL 100 SHARES BUY/SELL 200 SHARES ----- -------- -------- $1 .23 .15 $2 .28 .20 $5 .45 .37 $10 .69 .54 $15 .86 .70 $20 1.03 .82 $25 1.22 .97 $30 1.35 1.09 $35 1.47 1.22 $40 1.59 1.34 $50 1.84 1.59 $60 1.84 1.84 $70 1.84 2.09 $80 1.84 2.34 $90 1.84 2.59 $100 1.84 2.84 Kevin Koch (Koch is it) ...decwrl!dec-rhea!dec-handel!koch Posted: Tue 26-Mar-1985 12:09 Littleton Time To: RHEA::DECWRL::"net.invest"