Direct Stock Purchase Options
Most investors prefer to trade investments through the opening of a brokerage account. However, this is not always necessary. In some cases using the alternative ways of buying and selling investments, which exclude the participation of a broker, is far better. This article aims to acquaint you with these methods of purchasing a stock directly instead of using the services of a broker.
Stock Purchase Option 1 - Using the Company's Direct Stock Purchase Plan
Many companies provide investors with the opportunity of purchasing their stocks directly from them through the use of a direct stock purchase plan. So, if you sign for such a plan, you will be able to purchase shares of stock directly from the source.
Such plans require a minimum initial deposit. However, it can be waived if the investor agrees upon the automatic withdrawal from the checking or savings account each month. If you are willing and able to use this option, through the withdrawals the company will purchase stock on behalf of you.
Stock Purchase Option 2 - Using DRIP Cash Investment Option
DRIP stands for dividend reinvestment plan. It includes a cash investment option of which many investors are unaware. By allocating and sending a particular amount to the program administrator, s/he will purchase shares on behalf of you. If you participate in such a program you will benefit from the opportunity of purchasing fractional shares. In this way the investor will take the chance of building wealth by using all of his/her money. However, in order to take advantage of this the investor should possess at least one share of the company.
Stock Purchase Option 3 - Using a Specialized Service to Purchase One Share
Many companies provide the opportunity of purchasing only one framed share of stock that is part of many corporations achieving great success. This option has its limitation, which is the same as in the DRIP alternative. However, when you become an owner of the share, the rest of the procedure is easy and quick to complete. Having started, it is up to you to select the stocks you prefer to become part of your investment portfolio.
Finally, now that you know some of the options of purchasing a stock without the services of a broker, it is up to you to decide in which case you are going to call a broker or not.
Rate this article : Low | High |
- The Long-Term Scope of Stocks
- Investing According to Dow Jones Industrial Average
- Allocating for Investing Purposes
- Stock Trader vs Company Investor
- When to Buy and Sell Stocks
- Before You Buy Stocks
- Bull and Bear Market Strategies
- Electronic Trading vs Stock Exchange Trading Floor
- Long-Term Stock Investment vs Short-Term Trading
- Stock Market Prices and Buying Strategies
- Personal Reasons for Selling Stocks
- When to Sell a Stock
- Beating the Market Strategy
- Stock Portfolio Diversification
- Dogs of the Dow Investment Strategy
- Purchasing Your Company’s Stock
- DRP Types and Benefits
- Dogs of the Dow Performance
- Investment Strategy Types
- Common Stock Investing Strategies
- The Warren Buffett Way - Principals for Successful Investment
- Value Investing Basics
- Has the Time for Selling Stocks Come
- Selecting Your Investing Strategy
- Dollar Cost Averaging Benefits
- Determining the Number of Stocks to be Included in Your Portfolio
- Ex-Dividend Date - Why It Matters
- Constructing a Successful Stock Purchase Plan
- Understanding After-Hours Trading
- Strategies to Deal with a Down Market
- Stock Market Day Trading
- Strategies to Deal with a Weak US Dollar
- Buying Stock on Margin
- Stock Price Forecast
- Stock Option Strategies
- SEC Order-Handling Rules
- Stock Portfolio Balance Maintenance Techniques
- Short Interest Ratio Monitoring
- Holding Your Securities: Physical Certificate
- Holding Your Securities: Street Name Registration
- Holding Your Securities: Direct Registration
- Management of Investment Decisions Through Stock Screens
- Direct Stock Purchase Plans
- Down Market and Discounted Stock Opportunities
- What Investors Need to Know about After-Hours Trading
- When to Apply Averaging Down
- What Investors Need to Know about Auto-Trading Programs
- Financial Analysts: NYSE and NSAD Rules and Disclosures
- Insider Trading Tracking
- Asset Allocation – Choosing the Best Allocation Strategy
- Investing in Equity-Indexed Annuities Explained
- The Pros and Cons of Exchange-Traded Funds
- Prepaid Tuition Plans versus College Savings Plans
- Characteristics of Variable Annuity Products
- Diversification of Assets
- Rebalancing Your Assets
- Cross-Market Trading Circuit Breakers
- Margin Requirements for Pattern Day Traders