NZX

The New Zealand Stock Exchange (NZX) requires that investors hold a minimum number of shares when they invest in a company. That number depends on the stock price. See the table below for the minimum required number of shares you must hold according to NZX requirements.

To do the math, first find the price of the stock you want to buy. Then look at the table below. Multiply the stock price times the minimum number of shares and that’s your minimum investment.

Price
Minimum shares
< $0.25
2,000 shares
$0.251 – $0.50
1,000 shares
$0.501 – $1.00
500 shares
$1.001 – $2.00
200 shares
$2.001 – $5.00
100 shares
$5.001 – $10.00
50 shares
$10.001 +
25 shares

Exceptions

Company/Security Code
Minimum shares/units
ASBPA/B
5,000 shares
APA, ASD, ASF, ASP, ASR, DIV, EMF, EUF, FNZ, GBF, MDZ, MZY, NPF, NZB, NZC, OZY, TNZ, TWF, USF, USG, USM, USS, USV
100 units

 

ASX

For stocks on the Australian Stock Exchange, the rules are different…and simpler. You simply need to buy $500 worth of a share, regardless of the share price. And once you’ve purchased your first $500 (What the ASX calls the ‘minimum marketable parcel’.), then you’re free to buy more of that stock in whatever increments you wish…whether it’s $50,000 or $0.50.

One thing to consider – you’ll likely pay a brokerage fee when you buy your stock. You’ll get hit again when you sell. While a $0.50 investment might sound fun, it can be hard to generate a return if you’re paying $15 fees buying and selling it.