ABSTRACT

In choosing people stocks, people will probably look for the greatest diversity in the kind of industry. People would not only be faced with erratic and tricky chart action, and much higher percentage costs for commissions, but also people might not be able to operate on margin at all. There are, from time to time, limitations on the amount of margin on stocks at all levels. In selecting the price level of the stocks people prefer to trade in, people cannot set too arbitrary a limit because there are other factors to consider and people may have to make some compromises on one score to get what they want in other direction. The chapter examines, for instance, volatile and speculative issues that make larger percentage swings than most other stocks at their price level. It helps to choose stocks representing a wide variety of groups or basic industries.