| A stock, also known as equity or share is a portion | | | | plan. Many companies offer direct stock purchase |
| of the ownership of a corporation. A share in a | | | | plans. These plans allow investors to buy shares of |
| corporation gives the owner of the stock a stake in | | | | stock directly from the company. Whether a |
| the company and its profits. If a corporation has | | | | company offers this plan or not can be found by |
| issued 100 stocks in total, then each stock | | | | logging onto the company's website and then getting |
| represents a 1 percent ownership in the company. A | | | | in touch with the investment relations department |
| broker is a licensed agent who offers investment | | | | through the telephone or an email. DPPs for the |
| advice to investors such as when and what to buy | | | | purchase of a company's stock are usually handled |
| and whether to hold or sell securities. He also | | | | through the company's transfer agent. Most |
| executes the buy-sell orders on behalf of the | | | | companies have a minimum initial deposit, which is |
| investor. In lieu of the services rendered, the broker | | | | invariably waived off if the investor agrees to |
| charges a percentage of the transaction amount as | | | | automatic monthly withdrawals from his or her |
| brokerage fee. | | | | checking or savings account. This way, the company |
| Undoubtedly, competent broker can be of great | | | | automatically purchases stock for the investor by |
| assistance for managing stock. The broker can be of | | | | debiting his or her bank account every month. This |
| great help in cases when the investor is a novice. | | | | can be an easy and relatively painless way to save. |
| One can slowly learn about the new features of the | | | | Some companies may not offer a direct purchase |
| investing world, trading, different kinds of financial | | | | plan but instead may have a dividend reinvestment |
| assets etc. For those who are seasoned in the stock | | | | plan or DRIP. This plan allows the investor to send a |
| market, a broker can save on time. Also, a good | | | | check in any amount over 10 or 25 dollars, to the |
| broker can recommend good investment | | | | program administrator, who will in turn purchase |
| opportunities. Finally, brokers keep detailed records of | | | | additional shares on behalf of the investor. The |
| the buying and selling of stocks, which could come | | | | advantage rests on the fact that the investor is |
| handy for the investor at the time of filing the | | | | allowed to purchase fractional shares. However, a |
| income tax return. | | | | prerequisite is that the investor has to own one |
| Opening an on line brokerage account has also got its | | | | share of the company before enrolment. Companies |
| own benefits but transactions cost between 4 to 20 | | | | such as 'One Share' allow the investors to buy a |
| dollars, depending on the firm. However, one can | | | | single, framed share of stock in many leading |
| save on the high commissions charged by brokerage | | | | corporations. Once the share is in possession of the |
| firms by utilizing certain alternate investment | | | | investor, the enrollment paperwork takes only a few |
| strategies. Many investors are not aware of the | | | | minutes. After the enrolment formalities are |
| substitute ways to acquire stocks and mutual funds. | | | | completed, the investor can start building positions in |
| These methods have made stock handling extremely | | | | his or her favorite stocks. The dividend reinvestment |
| effortless and undemanding. | | | | plan works as a great tool for growing one's portfolio |
| The first alternate remedy for purchasing stock is to | | | | and of course helps to avoid the uncalled for |
| invest through the company's direct stock purchase | | | | brokerage commissions! |