| One of the simplest, most effective, and | | | | investors pay only the usual brokerage fees |
| currently most popular methods of buying stock | | | | which, for the sake of convenience, are deducted |
| is the Monthly Investment Plan.The Plan now has | | | | from his payments. Permissible payments range |
| more than 93,000 accounts in force, and new | | | | from as little as $40 every three months to a |
| ones are being written at the rate of about 180 a | | | | maximum of $1,000 a month. The usual rate is |
| day. Another 111,734 Plans begun in the same | | | | $40 a month. Over the years, General Motors has |
| period have been completed or terminated. | | | | emerged as the favorite MIP stock. It is being |
| Altogether, MIP investors have bought some | | | | bought by some 4,500 Plan investors. If you |
| 3,674,000 shares of various stocks, with a | | | | should happen to want it, too, what would your |
| market value at time of purchase of over $154 | | | | monthly $40 buy? As this was being written, GM |
| million. The Plan operates on the brilliantly simple | | | | sold at 48V4. With a commission of |
| basis of reversing the conventional buying | | | | approximately 6 per cent deducted, you have |
| procedure. Instead of having the price of the | | | | $37.74 for investment. This will buy .7781 per |
| stock desired determine the amount of money | | | | cent, or about ¾ of a share. Right here is |
| that must be invested, MIP permits the amount | | | | the unique element of MIP. It is possible in ordinary |
| of money available for investment to determine | | | | stock-exchange dealings to buy an odd lot of as |
| the amount of stock bought. This is a feature | | | | little as one share. It is possible to spend no more |
| highly attractive to new or inexperienced | | | | than $40 and acquire 10 shares of a stock selling |
| investors, without large sums at their disposal. | | | | at 3. But in no way except through the MIP can |
| Since the Plan encourages regular, periodic | | | | an investor buy fractional shares and accumulate |
| investment, it also permits the application of Dollar | | | | stock costing more per share than he has to |
| Cost Averaging, one of the more successful | | | | invest. The prime benefit to the investor is that it |
| formulas for acquiring stock. Step by step, here is | | | | brings the entire range of Big Board stocks within |
| how it works. The would-be investor, first of all, | | | | reach. While it is not true that higher-priced stocks |
| may go to a New York Stock Exchange member | | | | are necessarily sounder or better values than |
| broker, any of whom may service an MIP | | | | lower-priced stocks, a great many of the premier |
| account. He tells the broker which stock he would | | | | issues are to be found at prices above $40. It |
| like and how much, on a monthly or quarterly | | | | also seems to be true that even if a person |
| basis, he expects to invest. He may stocks listed | | | | accumulates, say, $180, by putting aside $40 a |
| on the Exchange, but no securities handled over | | | | month for nearly five months, he does not rush |
| the counter, or exclusively on other exchanges. | | | | into the market to buy one share of American |
| The broker notes this information on a form, | | | | Telephone & Telegraph. Although it may be an |
| together with the name (or names) in which the | | | | illusion, $180 in the savings bank seems like more |
| stock is to be registered, and upon receipt of a | | | | wealth than a mere one share of stock-even |
| first payment, the Plan is in motion. The form, let | | | | AT&T. Furthermore, in five months' time, the |
| it be said, is not a contract, but a routine | | | | accumulation may be needed elsewhere, or A T |
| purchase order. It does not obligate the investor | | | | & T may have reached 200-both eventualities |
| to a series select any of the more than 1,500 | | | | discouraging to the eager investor. You also have |
| common and preferred of instalment payments; it | | | | more safety in the Forex, if you have a pool of |
| is simply a record of his intention to invest a | | | | money and only invest a small part of it 1-2% per |
| certain amount at regular intervals, if possible. Its | | | | trade. With this method you would need to make |
| small print merely specifies the normal conditions | | | | a bad trade more than 50 times is succession |
| under which securities are bought and sold, which | | | | before you lost all of your money. To limit your |
| apply to any stock-exchange transaction. No fees, | | | | losses and increase your gains it is best to use |
| charges, or interest payments are involved. MIP | | | | some Forex software. |