Buying stock directly from company

More than companies listed on major exchanges now offer small investors the option of buying stock directly from them. The types of companies you can buy stock directly from include big box stores, businesses in the restaurant industry and even some large manufacturers. DSPPs are a simple idea, really. An investor opens an account with a company through a transfer agent and deposits funds in the account.

How to Buy Stocks

You may be the sort of person who likes to cut out the middleman in any transaction and so you're asking if you can get stock in a company without going through a broker. Many publicly traded companies offer direct stock purchase plans. A DSPP is an investment account you use to buy stock directly from the company.

DSPPs have some real advantages for small investors. They have some disadvantages as well, so you need to think things through before jumping into this form of investing. Basically, a DSPP is an investment account dedicated to the stock of a single corporation. When you buy stock from a broker, shares are typically registered to the brokerage firm and credited to your account. According to Bankrate.

When you consider opening a DSPP with a company, read the plan brochure or prospectus carefully. There is sometimes a one-time set-up fee and the charges for selling shares are usually higher. If this describes you, DSPPs just might be your cup of tea. This not only makes investing with a DSPP affordable, it is a great way to save money on a regular basis.

The downside of direct stock purchase plans boils down to lack of flexibility. If you want to use DSPPs to buy shares in more than one company, you have to open a separate account for each one. Another problem is that all of your investment eggs are in one basket if you have just the one DSPP because there is no way to diversify your investments. To get the risk-reducing benefits of a diversified investment portfolio, you need a brokerage account that allows you to invest in a variety of securities if you want to avoid opening up a baker's dozen or more DSPP accounts.

He writes about business, personal finance and careers. Adkins holds master's degrees in history and sociology from Georgia State University. He became a member of the Society of Professional Journalists in Lack of Flexibility The downside of direct stock purchase plans boils down to lack of flexibility.

Video of the Day. Brought to you by Sapling. References Bankrate. How to Buy Individual Stocks. Good Ways to Invest Your Money. Drip Stock Investment Programs. More Articles You'll Love. How do I Buy Stocks Direct?

Direct Stock Plans. Often, the easiest method of buying stocks without a broker is by participating in a company's direct stock plan (DSP). These plans. There are a few circumstances in which a person can buy stock directly from a company, including direct stock purchase plans, DRIPs and.

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You can set up an account by depositing cash or stocks in a brokerage account. If you prefer buying and selling stocks online, you can use sites like E-Trade or Ameritrade.

If you felt burned by the stock market following the financial crash of , you are not alone. The financial crash of left many wary of investing in the stock market and working with stockbrokers. In recent years, however, the investment landscape has undergone a transformation.

Advantages & Disadvantages of Stocks Directly From the Company vs. a Broker

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Buy Stock Direct

Instead, all you need to do is push a button to trade stock. You can bypass a broker and buy stock by using a transfer agent, but the costs can be high. You can use direct purchase plans, or stock purchase plans, but you need to be an employee of the company. However, there are still serious obstacles that can bar the average person or retail investor from the stock market. Transaction fees, hidden fees, and trading fees can eat up all or most of your profit, for example. In addition, brokerages, exchanges, and regulators often place serious restrictions on individual traders. Thus, always research stock purchases carefully before entering the market. A little knowledge can help you avoid high fees and ridiculous restrictions. In the modern world, you will not need a broker to buy stock. However, most people will need a brokerage account to buy and sell stocks.

You may be the sort of person who likes to cut out the middleman in any transaction and so you're asking if you can get stock in a company without going through a broker.

Company Filings More Search Options. Many companies allow you to buy or sell shares directly through a direct stock plan DSP.

How to Buy a Stock

Lowe's Companies, Inc. These plans are designed to provide individual investors with a convenient, low-fee method to become Lowe's shareholders and increase ownership of Lowe's common stock over time. Proceed to Computershare Web site. All rights reserved. Skip to main navigation. Investor Relations. Shareholder Tools Buy Stock Direct. Request Printed Materials. Sign up for E-Mail Alerts. Contact Investor Relations. RSS Feeds.

How To Buy Stocks Online Without A Broker [21 Tips]

While many investors choose to buy and sell investments through a brokerage account , some investors may wonder how they can buy stocks without a broker. Direct investment plans offer the brokerage alternative that those investors are seeking. If your primary investing goal is to acquire a single company's stock as directly as possible, one of these plans can help you achieve that goal, but be aware of the drawbacks that come with avoiding brokerage services before you abandon them completely. Often, the easiest method of buying stocks without a broker is by participating in a company's direct stock plan DSP. These plans were originally conceived generations ago as a way for businesses to let smaller investors buy ownership directly from the company.