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Last night I was chatting with friend who works as a financial adviser for one of the world's leading brokerage houses (I think their logo is of an animal) about all facets of investing. We went back and forth, dissecting our investing philosophies, covering topics such as how the Internet is affecting virtually all industries, today's market environment and, of course, the fiscal cliff. The talk naturally gravitated toward investment ideas. That's when he revealed an interesting fact: He is not allowed to invest in securities that trade for less than $6 a share, as they are deemed too risky.
I've always been aware that many investment funds have similar restrictions, but to hear it again just made me laugh out loud. I understand and appreciate the need for the investment industry to protect its clients, but no rule seems more ridiculous to me than the restriction to invest on the basis of an arbitrary number....463 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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