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What are Quarter Stocks?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 09 October 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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Quarter stocks are any stock options that have a par value of $25.00 US Dollars (USD). Often a quarter stock option is considered a good investment with a relatively low amount of volatility. This makes options of this type relatively attractive to more conservative investors, as well as those who are in the first phases of creating a stock portfolio. As with all types of investment options, brokers can advise investors on the quarter stocks that show promise of splitting or otherwise increasing in value at some future point.

While being a relatively low risk venture, the purchase of quarter stocks should be approached with the same care as any other stock purchase. This means taking a solid look at the current quarter stock market performance as well as reviewing the past history associated with the stock option. Becoming familiar with past trends associated both with the market and with the stocks under consideration will help the investor to form a competent projection of what to expect from the stock over the short term as well as over the next year or so.

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Because a par value refers to the current face value, quarter stocks are purchased at the stated value of $25.00 USD per share. As with many stocks, there is a good chance that the investor must purchase a minimum number of shares at the same time. However, that is not always the case. There are stock options of this type where it is possible to purchase a single share, although those kinds of deals are extremely rare.

One of the benefits of finding and securing quarter stocks that show promise is that the low price per share makes it possible to buy a larger number of shares at one time. While the return is not likely to be spectacular unless a split occurs, stocks of this type tend to hold their value over time, effectively protecting the investor from losing money on the acquisition. Even if the stocks do not appreciate in value, it is usually possible to sell quarter stocks for the same face value and thus avoid losing any money at the time of the sale.

Brokers can provide inform suggestions to investors who are interested in adding quarter stocks to their portfolios. As with any other stock options, brokers have the resources to examine each quarter stock offering and determine if the stock is a good fit for the investment philosophies of the investor. In general, it is a good idea to seek the counsel of a qualified broker before purchasing any type of quarter stocks. This is because a broker is more likely to take into consideration factors that may not be readily identified by the investor, but have the potential to impact the future performance of the stock.

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