| The intent of buying and trading stocks is to | | | | As an individual investor, you can directly buy shares |
| introduce some of basic knowledge about how to | | | | of a company through dividend reinvestment plans |
| buy stocks. To help beginner investors understand | | | | (DRIPs) or via direct stock purchase plans (DSPs). |
| the process of buying stocks, in this article we will | | | | Several corporations offer dividend reinvestment |
| cover the following topics: | | | | plans (DRIPs) that allow existing stockholders to |
| What is a Stock? | | | | automatically get their dividends in shares. Other |
| Buying Stocks | | | | companies offer direct stock purchase plans (DSPs) |
| Buying Shares Directly from Companies | | | | that let small investors (not necessary a shareholder) |
| Buying Stocks at Work | | | | buy shares directly from them with a small service |
| What is a Stock? | | | | fee and some of them will offer this service without |
| A stock represents shares of ownership in a | | | | a commission. |
| company. Anyone who owns a part of ownership in | | | | Many corporations that form the Dow 30 list offer |
| a business is called a shareholder or a stockholder. As | | | | DRIPs. The list of DRPs stocks can be found at |
| a shareholder, you will receive a share certificate that | | | | Buying Stocks at Work |
| shows you own a piece of a company. | | | | A number of corporations offer Employee Stock |
| Buying Stocks | | | | Ownership Plans (ESOPs) that allow their employees |
| Buying and selling stocks are at the center of online | | | | to invest in the company's shares. Check with your |
| trading. As an individual investor, you can buy stocks | | | | human resource officer to see if your company has |
| in two ways. You can purchase shares either directly | | | | such plan. |
| from the issuer at the face value without a | | | | This concludes our introduction to buying stocks for |
| middle-man (on the primary market) or from the | | | | beginners. As a beginner investor, before investing |
| public companies listed on the stock exchange | | | | your money in any shares you should research the |
| through financial intermediaries (on the secondary | | | | company in light of your investment style or |
| market). | | | | strategy. |
| Buying Shares Directly from Companies | | | | |