Since MIP is acting as your agent, it would, otherwise, have to circularize investors to see who wanted to exercise rights and who did not, and to arrange for collection of the amounts due, and to compensate for fractional holdings”all of which is a more complicated and expensive procedure from an accounting standpoint than MIP is prepared to undertake. Being an MIP investor has one major drawback: it is an expensive way to accumulate stock. Not only is a number of small purchases considerably more costly to make than one large one, but odd-lot buying also involves a charge not levied on round lots. The fact is that the 6 per cent commission charged in transactions involving $100 or less is the highest rate it is possible to pay. (Most round-lot commissions work out to between 1 and 2 per cent.) In the case of our original investor (See Chapter 9, p.


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