Savings and Investments


Can you pay too much for stocks?

Yes, like anything that you buy, if you are first in line to buy a stock, you may get a very good deal, because the company may have thought that there is less demand for the stock than there really is. So, if there is a lot of demand for a stock, in an instant, the price of the stock may increase quickly in a few minutes or even seconds, from the initial offering price, until all buyers and sellers of the stock 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.


This is a web preview of the "The Handy Personal Finance Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App