The unit price
LottoStocks democratizes the stock market by providing equity investments at a unit price that encourages participation by everyone.
Stock split analogy
A basic tenet of equity investing is that a stock with a high unit price can be a barrier to purchasing that stock. According to the Securities and Exchange Commission:
"Companies often split their stock when they believe the price of their stock exceeds the amount smaller individual investors would be willing to pay for the stock. By reducing the price of the stock, companies try to make their stock more affordable to these investors."
The LottoStocks unit price is analogous to a stock split. Because a LottoStocks ticket sells for $1.00, unit cost is no barrier to participation to the stock market.
Most financial institutions and insurance companies have a minimum amount that a potential investor must come up with in order to open up an equity account, such as $5,000 or $10,000. [1] This can prove a barrier to many individuals from entering the equity area of investment because of the lack of funds.
Since the LottoStocks unit price is also the minimum required to open an account, limitation of funds can never be a barrier to stock market participation for anyone.
[1] For example, as of this writing (February 4, 2005), the minimum required investment for Sun Life Financial’s Keyport Index Multipoint annuity is $10,000. With most of discount broker Vanguard’s non-retirement accounts, a minimum of $3,000 is required. Vanguard's retirement (IRA) accounts: $1,000. Schwab’s minimum is $10,000, qualified or non-qualified.