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Individual Stocks

Individual Stocks: The Basics

Can I pay too much for stocks?

Yes. Like anything you buy, if you are first in line to buy a stock, you may get a very good deal, because the company may have anticipated less demand for the stock than there really is. So if there is great demand for a stock, the price of the stock may increase quickly—in a few minutes, or even seconds, from the initial offering price, until all the stock’s buyers and sellers have been satisfied during the trading day. If you arrive at the sale late, the price could be many percentage points higher than in the morning, and you may end up paying more than the person who bought the stock first thing in the morning.



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