[Grizwold]

Hi WLVRYN,

Since your kids have so many toys, I'll assume they are pretty young. Practically, it is important to consider the transaction fees. Since your parents are making the purchases, you should not be so worried. I believe the spirit of the gift is to teach your kids about investing, and not necessarily making good investments. It is just an introduction for your kids. As long as your parents know that the transaction fees will eat up a lot of the potential profit, you should not be concerned about the negative effect of multiple small purchases. Apparently, your parents are educated investors, and most likely know the effect of transaction fees. You should see this as an opportunity to teach your children about investing, not as an opportunity to realize abnormal or normal profits. Part of the lesson can be about the effect of transaction fees. Anyway, 5-10 shares of Disney is about $150~300. The fee may be as small as 2~3%, but as high at 10%. That's pretty big, but not that big... It's not like paying a 10% fee on a $10,000 transaction. I'd say forget about the fee for now. Teach your kids about the fee later.

Clark