Question

Gretchen wants to start investing and her broker recommends that she use $100 of her weekly paycheck to purchase shares in stocks. Her father recommends buying $400 in shares every month instead, because it will save on fees and commissions. Who is correct and why?

Answer 1

The broker is correct because four small trades result in paying smaller fees than one larger trade.
The father is correct because one larger trade would have smaller fees than four smaller ones.
The broker is incorrect because four trades each month is over the breakpoint.
The father is incorrect because buying $400 at once will cost more in commissions than four smaller purchases.

Answer 2

@zaibali.qasmi

Answer 3

her father is correct..

Answer 4

true