September 05, 2024 (MLN): The decision to transform marketable lot of various sizes into one-share marketable lot was praised for its advantages by all stakeholders. And indeed, it should be? The anticipated advantages are varied and significant in magnitude for investors in stocks.
Nevertheless, this article does not intent to enumerate the advantages resulting from the decision regarding the capital market in its entirety, nor does it focus on the specific benefits for stock investors. Numerous articles have been published, and many more are expected to be written in the forthcoming days.
Conversely, this article sheds light on the academic significance of the decision, particularly in terms of facilitating the acquisition of knowledge and skills essential for portfolio investment.
For many years, Portfolio Investment has been a subject of interest within the filed of finance. As the discipline has evolved, this topic has branched out from its roots in finance, developing into a comprehensive discipline dedicated to investing.
It now offers a range of certifications and degree programs for individuals intend to pursue a career in the investment profession.
Business schools that had previously been content with teaching portfolio investment in a purely theoretical manner suddenly recognized the value of incorporating experiential learning, thanks to this decision.
This shift allowed them to conceive, create, and manage a scaled-down version of a large institutional stock portfolio—one that offers similar diversity and flexibility but at a much lower cost. It is important to note that experiential learning requires the use of such a miniaturized portfolio.
Previously, creating a miniaturized portfolio was challenging due to the inability to include 
certain investment-grade stocks. This was often because of their trading illiquidity or the high monetary value driven by a combination of elevated stock prices and the fixed size of marketable lots.
The shift to a single-share marketable lot eliminated these financial barriers, paving the way for experiential learning in portfolio investing.”
Educational institutions that previously viewed financing a portfolio for educational purposes as too risky found the prospect of funding a miniaturized portfolio more feasible.
They could achieve this either by allocating their own financial resources or through collaborative arrangements with students.
In fact, the benefits of converting marketable lots of various sizes into single-share lots outweigh the risks for both institutions and students. For students, the sense of accomplishment that comes from conceiving, creating, and managing a portfolio in real-life situations is invaluable.
The thrill of watching investments grow, the anxiety of seeing them falter, the relief of correcting mistakes, and the exhilaration of steering a fund out of a financial crisis—these experiences offer an unmatched form of experiential learning.”
For institutions, there is no greater honor than being recognized as the breeding ground for a new class of investors: micro-investors. These are individuals with limited financial resources but a strong desire to engage in portfolio investing.
This emerging class is poised to swarm the stock market in the future
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