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At large enough size, commission/trading costs are not necessarily a significant factor--individuals are just not great at stock picking and timing the market.
by superprime 13y ago
At large enough size, commission/trading costs are not necessarily a significant factor--individuals are just not great at stock picking and timing the market.
- bunderbunder 13y agoAbsolutely true. However, individuals don't necessarily have enough money in their brokerage accounts to hit the point where trading costs become insignificant, especially if they're trying to diversify.
- HockeyPlayer 13y agoAt those larger size, the bid/offer spread becomes much more significant, and is usually a bigger cost than the commission.