Kossuth County Advance from Algona, Iowa on July 4, 1966 · Page 5
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Kossuth County Advance from Algona, Iowa · Page 5

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Algona, Iowa
Issue Date:
Monday, July 4, 1966
Page:
Page 5
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r 1 0 •Y THOMAS E. O'HAftA CMtrmin, tattd of TruMM* ' National Att'n of (nvMtaunt Clubt OHere, NtttMut Aetftiitleii of lrw««tmw»t ,Ckit», Dttart* rh«nt S, •**10*4, Ottoit, Mich, 41231, MHlMinf * ttitnptrf, Mr*. M«rry. t. Mew Q. You frequently point out the high fees involved in buying mutual funds. Out of fairness, shouldn't you point out that there are fees when you go to a broker for stocks—and that a buyer pays a premium when he buys small amounts (odd lots)? A. Out of fairness, I have to say that this column has discussed several times and in some detail, the commissions charged by brokers and the odd lot fees involved in buying fewer than 100 shares of a given stock. We're not trying to handicap anyone. We are just pointing out facts. And the reason I keep point ing out the fees involved in buy ihg mutual funds, especially "front load" funds, is that they are considerably higher than those you pay when you buy corporate stocks through broker. Let's say you have $3,000 to invest. If you went to your broker and bought 65 shares of a stock at $52.12y2, you would have spent $2,919 just for the shares. Because you would bs buying an odd lot (fewer than 100 shares), you would be paying an odd lot commission of 25 cents a share, or $14. Then there would be your regular broker's commission which would amount to about $32. That's a total cost, just to buy the shares, of $46, or about one and one-half per cent of your total stock purchase. On the other hand, if you took your $3,000 to a mutual fund salesman, the commission would be in the area of eight percsnt. Bight percant of $3,000 is $240. You'd end up with only $2,760 oi your $3,000 actually working for you. When the fund puts your money in a stock, say Fcrd Mo tor Co., it lias to pay a broker's commission, too. The fund winds up with 52 shares of stock working for you. If you bought it yourself you'd have 56 shares working for you. Q. Last August I bought SC shares cf an over-the-counter stock. I paid 27 1/8, which -w*i sev&ral points higher than the bid price quoted in the Wai Street Journal. Will you explain why there was such a difference betv/een the bid price and the price I paid? :• A. As you are probably aware, you have quite a different situation in. buying over-the-counter securities than you do in purchasing those listed on an exchange. The quotations carried in various publications for over4h& counter stocks are approximate prices at which transactions have taken place recently and do not necessarily represent actual bids or actual offers, as in the case of listed securities. When you ask your broker to buy a security over-the-counter he calls other brokers who he believes may have some of the stock you want. When he finds someone with some of the stock he then will negotiate a price. . In some cases a broker may 'do considerable shopping to get the best possible price. But he might purchase the first stock he finds available. If you have a particular pric in mind at which you want to buj a stock, it is well to tell broker what you will pay. He'l either find it for you at tna price or tell you he can't locat any at that price. In which case you'll have to pay more if you want it. Q, Please give me some tipt on becoming familiar with the stock market, A. First, ask your librarian to recommend one or two beginning books on investing. Second, many brokerage houses have booklets on the stock market and the understanding of corporate reports that are free. And read your daily newspaper's financial section. It has a wide variety of stories on what is happening in industry, which is reflected on the market, Also, make a practice of reading one or more oi the good financial magazines that are available. When you have read this back ground material, you may find the NAIC's Investment Club manual helpful. It is designed to teach you how to get down to the specific job of making a study oi an individual security and forming a judgment on it. * * * Interested in starting an investment club? NAIC's booklet •'An Educational and Investment Opportunity far You/' tellf yov hew. For « free copy writ* to T Mr. and Mrs. Don Meyers of Minneapolis spent the weekend with her parents Mr. and Mrs. Arnold Heise and his parents in LuVerne. Mrs. Winnie Brown of Marshalltown is visiting her sisters, Mrs. Esther Kouba and Mrs. Lucille Johnson. Mr. and Mrs. Mick Will of MarshaUtown spent the weekend with his parents, Mr. and Mrs Fred Will. Mr. and Mrs. Richard Marks and girls visited Thursday eve ning at the Albert Fish home. Mr. and Mrs. Kenneth Greg son of Mason City visited Sun day afternoon at the Elmer Marr untie. Mr. and Mrs. Dale Yeoman and family called at the Bob ioover home at Britt Sunday. Mr. and Mrs. George Yeoman, r. and Mrs. Ben Widen and family, Mr. and Mrs. Robert Mitchell and family, Mr. and Mrs. Dale Yeoman and family, Ernest Widen and Mr. and Mrs. Jim Siebrands, of Dumont, enjoyed a picnic in the Corwith park on Sunday. Mr. and Mrs. Albert Fish and family visited Sunday afternoon at the Albert Fett home in Al gona. Brett Fish accompanied Mr. and Mrs. Gerald Richardson on a fishing trip to Minnesota. Mr. and Mrs. Albert Johnson visited Tuesday afternoon with Mrs. Charlotte Meadows at the Carroll hospital. Mrs. Meadows was injured in an auto accident enroute to the Johnson's Mon day. Mr. and Mrs. Myron Cram were Sunday dinner guests o his parents, Mr. and Mrs. Car roll Cram. Mr. and Mrs. Jim Silcott o Oes Moines and Mr. and Mrs Lou Hoover of Butt visited Saturday evenitig »t the Date Y» mart hotne. '-"T^-'^-?;,::-,<. Mr attd Mrs. Robert Kraft and daughter visited Wednesday at he Dale Yeoman home. ^ A group of Corwith wottie* serve the Hancock County Me* mortal hospital Auxiliary on Friday at Britt. Mr. and Mrs/John Mullins __ tended the funeral Monday of Charles Mailman at Fort Dodge. Mr. and Mrs. Ben Krefas tended a McCutcheoh reunion on Sunday at Eagle Grove. Mr. and Mrs. Frank Weber and family, Henry Weber and Mr. and Mrs. Dale Johnson and girls were among those attend? ing a Weber reunion Sunday at Bancroft. Mr. and Mrs. Bernard Spang ler attended the 25th Wedding anniversary of Mr. and Mrs. Nor ris Larsen at Britt. Rev. and Mrs. John Steffenson of Norbeck, S. D., visited Wed Friday with Mr. and Mrs. Leonard Meyers at Ottawa, Kans. „ Mrs Bernard Spangler visited tiday with her suiter, Mrs. ameft Darrah at Kanawha. Mrs. Darrah had been a patient at the Bdmond hospital, itrs. Ann Zeigler is helping to cafe for her. Funeral services for Kirk E. Phillip, 19, who died June 22 at IM Artgeles, Calif., were held June 2btn at Paullina. Kirk, the ton of Dr. and Mrs. Phillip, for net CotWith residents, was in ured in a motorcycle accident a week ago in Calitornia. He also leaves a brother John. Several from Corwith attended the funeral which was held at the Presbyterian church. Mrs. Lee Williams and Mrs Charles Nygaard ot Wesley are attending a school of Missions at Grinnell college this week. Mr. and Mrs. mil Puller and Mr. and Mrs. Dave Quinner were Sunday dinner guests of Mr. and nesday home. at the James Zweifel Mr. and Mrs. Lyle Meyers ftiu family and Mr. and Mrs. Donald Meyers Mr. and Mrs. Kenneth Wag-1ted at the home of Mr. and Mrs. ler, Tim and Ramon*, spent the weekend with Mr. and Mrs. Lu> ertte Thompson at Blue River, Wis* •••• ' ; •• . Mrs. John Puffer. Mr. and Mrs. James ZweifeJ were Friday evening dinne guests at the Bert Beck home in Forest City. Arthur Livingston on Sunday Mrs. Harry Fleming and her ister, Mrs. Ed Letti of LttVeme are spending a week with their Mr. and Mrs. Rob Thompson and Mr. and Mrs. John Thompson of Farmer City, 111., spent the weekend with Mrs. Harold Oxley. They attended the Dianne Hansen and Ron Klassie wedding at the Lake Lutheran church near Renwick Saturday. Mr. and Mrs. Merle Wilhite and family of Des Moines are vacationing this week at his par cut's, Mr. and Mrs. Earl Wilhite. Don Wilhite of Des Moines spent Wednesday and Thursday with his parents, Mr. and Mrs. Earl Wilhite. Mr. and Mrs. Art Kraft, Renwick, visited 1'hursday with her mother, Mrs. Addle Hamm. Mr. and Mrs. Art labb visitec Sunday at the Walter Kimball home in Ventura. Enroute home they visited Mrs. Lois Chambers at Klemme. Mr. and Mrs. Clarence Aitchi son of Wesley visited Sundaj evening at the Art Tabb home. Mr. and Mrs. Carrol Cram vis- ister, Mini. Ed Mantey in MM- on, Wis. Mrs. clarence Jurgehsen and granddaughter, Cheryl Heilj vis- ted Tuesday with Mrs. Clara AL00NA MONDAY, JULt «;1*li Wolfe in LuVeffit* Mrs. Tillie Mate ited Thursday a Mrs. Addie Hamrrt. Mrs. Wilnw Tabfr T tt at the MeTcy hoSpiia% ty. . - : . " V v'ti ' u ' ^ ••*, WE WILL BE CLOSED FROM July 3 thru July 9 Esser Dry Cleaners FOR VACATIONS! Featuring <mrome-ayear Gulden Sleep Sale! ' FIRM SEALY GOLDEN SLEEPER Im. ^me! Firm smooth top sleeping luxury with a wealth of quality Sealy features ... now specially priced! Compare: • Smooth surface-no rest-robbing bumps • Hundreds of tempered steel coils • Pre-built, crush-proof borders . • Smart, extra heavy woven strips Now only mattress or box spring EXTRA FIRM GOLDEN SLEEP SUPREME The features in this outstanding value are usually found in mattresses selling for much more. 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Sealy EXTRA LONG 39 x§0" or 54x80" This 80" comfort zone is designed to give stretch-out room to folks taller than 5'9". 89 50 each pc. $ 9950 Rosturepedic 9 No morning backache from sleeping $^Q5Q On a too-soft mattress—designed in j Jf M .pc. cooperation with orthopedic surgeons Reg. size, ! or comfortably firm support. j w j n or f u || Visit our sleep shop today while these limited time Sealy values are on sale at... QUEEN SIZE 60 x 80" Sealy's bigger bed for smaller bedrooms gives 20% more room than full size. each pc. '4 0 0 4> % ',*•**• <y$ lyv KING SIZE 76 x 80" v. Most spacious of all I 50% more stretch-out room than regular full size. Our biggest and best! READ'S FURNITURE & CARPETING and WATSON INTERIORS CORNER PHILLIPS & CALL STREETS PHONE 5-2216 ALOONA

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