Word: investors
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Dates: during 1950-1959
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...SMALL INVESTOR...
...number of Americans who own stock has increased an estimated 1,000,000 in the past two years, bringing the total to about 7,500,000. At least half of them, say brokers, are small investors. Since they frequently buy their stock, in odd lots (less than 100 shares), Wall Streeters regard odd-lot purchases and sales as one of the best measures of what the small investor is doing...
...current bull market, the new small investors expect to make money. But will they? One of Wall Street's oldest saws is that small investors are wrong most of the time; they buy stocks when prices are high and sell when prices fall. But in recent years, market experts who have taken pains to study the actions of the little investor think that the old saw is wrong. One such expert is Boston's Garfield A. Drew, proprietor of an investment advisory service, who has traced odd-lot transactions back...
...dips scare the odd-lotter easily, even when the market is basically sound, makes him a poor short-term trader. For example, during the Fulbright investigation last March when the market broke sharply (TIME, March 21), the number of odd-lot sales rose sharply. But, in general, the small investor is not an in-and-out-of-the-market speculator. Chief reason: it is slightly more expensive to buy or sell odd lots at a given price since an extra broker's commission of one-eighth of a point is charged...
More evidence of the fact that the small investor buys for investment is the fact that he is not frightened out of stocks when a bull market turns into a bear. In 1929, odd-lot transactions were 13.2% of all transactions on the New York Stock Exchange. But after the crash, the odd-lot percentage rose to as high as 15.2% in 1931, was about the same in 1932. Since stocks were close to their bottoms in both years, they were good "buying years." And in both years the odd-lotters bought more stocks than they sold. In recent years...