Ask Matt: Sure, you can buy a single share

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Is there a downside to buying just one share of stock?

A: The stigma over buying just one share of stock is long gone. But there are still concerns for investors to pay attention to when purchasing a small amount of stock.

Thanks to online trading, there's no major reason to stop you from buying a single share of stock. And buying just one share isn't just for beginning investors, either. With stocks like online travel site Priceline.com trading for nearly $1,300 a share, just one share is a decent-sized investment. And don't forget Berkshire Hathaway's Class A shares, which are trading for more than $180,000 apiece.

There's no barrier from buying just one share. Online brokers don't apply surcharges or other financial penalties if you don't buy a round lot of 100 shares. But there are costs to consider, especially for those investing relatively small amounts of money. For instance, most online brokers charge about $10 to place a trade. That's the commission whether one share or 100 shares are bought. The problem is a $10 commission is a big bite if an investor is just buying one share of Disney, for instance, for $80 a share.

Investors looking to buy just a single stock should consider a broker like Loyal3, which offers $0 commission on a variety of popular stocks. Another option would be to take advantage of free commission offers at brokerages like TD Ameritrade and Charles Schwab on exchange-traded funds. Investors can buy a single share of an ETF, get diversified, and pay no commission.

Follow Matt Krantz on Twitter: @mattkrantz.