| Many traders and investors still buy and sell stocks | | | | be able to own shares of stocks through an |
| with the broker as the middleman. However, if your | | | | Employee Stock Purchase Plan. Usually, small |
| concern is how to purchase stocks without a broker, | | | | discounts are offered. |
| then you will find the answers below. | | | | Dividend Reinvestment Plan |
| Of course, this presupposes that you have the | | | | If you do not have the financial resources to own |
| necessary knowledge, experience and information | | | | bundles of shares in the company, you can avail of |
| about the stock market. Add in the willingness to | | | | the dividend reinvestment plan. Basically, you must |
| pour in the time and effort to arrive at logical | | | | own at least one share to enroll in the plan. You will |
| decisions and you will make good profits. | | | | then deposit fixed amounts of money to the |
| Direct Payment Plan | | | | program in order to buy more shares. |
| If you have already identified the company you want | | | | This way, you can purchase fractions of shares each |
| to invest in, then the direct payment plan is the most | | | | time payment is made. In time, you would have |
| cost effective method. There are many popular | | | | accumulated bundles of shares with your small |
| companies like Walt Disney that offer this option for | | | | payment increments and, hence, build up on your |
| interested investors. | | | | wealth. You actually have the benefit of dollar-cost |
| Keep in mind that each company will have different | | | | averaging. |
| policies on the direct payment plan. You will either be | | | | Specialized Service |
| permitted to apply online or be required to fill in | | | | There are also brokerage companies like Charles |
| documents or be asked to invest in a minimum | | | | Schwab and TD Ameritrade that provide for online |
| amount. Some companies waive the minimum amount | | | | direct stock investments services. You will be |
| on the condition that your bank account will be | | | | charged fees for most transactions. However, you |
| automatically debited every month. | | | | have the benefit of buying and selling stocks on your |
| Although a broker is not involved in a direct payment | | | | own instead of going through the brokers. This way, |
| plan, your investment will be handled by a transfer | | | | you save on the hefty commissions. |
| agent. You are usually informed of the amount of | | | | You can also buy a single share of stock from |
| shares and the time of purchase according to | | | | specialized services like One Share. Said share usually |
| company rules. The transfer agent may or may not | | | | comes in a frame, which makes for a great gift. |
| charge a fee for his services. | | | | Beyond its gift-giving aspect, this is one way to enroll |
| Now you know how to purchase stocks without a | | | | in a dividend reinvestment plan. Enrollment takes just |
| broker, but that does not mean that you have | | | | a few minutes. After that, you can start building on |
| escaped the equivalent of the broker's commissions. | | | | your investment portfolio without the hefty broker's |
| If you are an employee of the company, you may | | | | commissions taking away huge chucks of your profit. |