Stock Market Reviews

Can I Invest Direct

Investing in Stocks Direct From the Company

There are companies that allow an investor to purchase stocks directly from the company. This is perfectly okay according to the Securities and Exchange Commission. These are called Direct Stock Plans. It is called a DSPP. The company may require that you already have stocks through employment with the company. It is not required in all companies.

The Direct Stock Plan operates differently than buying stock through a broker. There is no commission charged for these stock plans, but there can be a small fee. The other difference is that the company buys and sells the stock at a given time. The investor cannot sell or trade stocks at will. The investor may turn the stocks over to a broker to sell, but the broker cannot charge a commission. You may be charged a fee by the company. It depends on your agreement.

If you have a favorite company, like the Walt Disney Company, Coca Cola or other brand names in the United State you may be able to implement a Direct Stock Plan to purchase stocks on a regular basis. You can review the list of stocks in your local library or check out the company you are interested in by accessing the company web site.

Another method of investing direct in a company is by way of the Direct Dividend Reinvestment Plan. It is commonly called a DRIP. The good aspect of this type of deal is that instead of receiving the dividends you agree to reinvest the dividends in more stock in the company. It is a colloquial Direct Stock Plan with a reinvestment agreement. You may do the same reinvestment plan with your other stocks besides mutual funds even if you have a broker.

The advantage is that if the company allows a diagnostic investor to purchase stocks directly this would acquiesce you to set advance a fee check withdrawal each pay period for the purposes of the stock animus. There are various advisory services that can assist you in locating companies that offer these direct stock purchase plan. I would suggest that you find companies you are interested in a make an inquiry with investor relations.

The advantage to contacting the individual company yourself is that authentic allows you to use your preferences and then do a microscopic amount of leg work. The company appropriate will give you the necessary forms and provide you with individual advice on how to set up pay roll deduction. In turn you can contact your banking institution, director human resources or bill payer and set up the account.

Veritable will astound you the number of very good companies that will allow you to buy stocks direct
by setting up a intention. The range of possibilities include, utility companies, fast board stocks, entertainment and retail stocks.

If you have a solid company that has shown solid performance this may be a good option for investing.
The only thing you have to lose is your time. The time it takes in gathering the information has a big accumulation. It will save you commission fees and provide you secrete a long term relationship with your favorite company.