When stocks are more affordable, but not cheaper

IF you are a stock picker, and don't have much money to spare, the cut in standard board lot sizes from 1,000 to 100 shares will help.

But don't get too excited. It has become more affordable to begin a position in UOB, sure. You just need to fork out a couple of thousand dollars instead of rustling up twenty grand. But is UOB cheaper than say, six years ago on March 9, 2009, when one lot cost an investor S$8,200?

Understanding the difference between what is cheap and what is affordable is one of the first key lessons of investing in stocks.

A stock's…