The most common way to buy and sell stocks is through a
broker, a traditional route of investing in the share market. However you can
also invest in stocks without a broker and pay no commission! Look for
companies that offer either a direct stock purchase open to all investors or a
dividend reinvestment plan for existing shareholders:
1) Direct Stock Purchase Plan (DSPP): You can place your
money with a corporation that offers direct stock purchase plan. This plan
permits investors to purchase shares directly from the issuing company, thus
eliminating the need for a stockbroker. There are many companies that allow an
investor to buy shares by means of DSPP, but they may charge you a small fee in
order to set up a stock purchase account, though you do not have to pay any
commission for buying shares. Some companies are willing to waive their
investment fees if investors join their automatic debit plan.
2) Dividend Reinvestment Plan (DRIP): If the company doesn't
offer a direct stock purchase plan, then you need to find out if it has a
dividend reinvestment plan. This plan allows an existing shareholder to
reinvest his dividends in the company in the form of shares rather than
receiving cash dividends. You have to own one share of the company before you
can enroll in this plan.
3) Apart from the above, you can also purchase a single
share through a specialized service.
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