Stocks you can buy directly
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. Those are just two of the most well-known electronic brokerages, but many large firms have online options as well. The broker executes the trade on the your behalf.
Buying Stocks and Mutual Funds without a Broker
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?
You can buy stocks without a broker by taking advantage of direct stock purchase plans, dividend reinvestment plans, and other specialty accounts. You can also buy stock through a full-service broker, and some companies allow investors to buy stock directly. Dayana Yochim. Feb. 10,
Company Filings More Search Options. Many companies allow you to buy or sell shares directly through a direct stock plan DSP. You can also have the cash dividends you receive from the company automatically reinvested into more shares through a dividend reinvestment plan DRIP.
Can you be an online investor without a broker? Direct investments are where you buy the stock straight from the company.
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Advantages & Disadvantages of Stocks Directly From the Company vs. a Broker
We use cookies to allow us and selected partners to improve your experience and our advertising. By continuing to browse you consent to our use of cookies. You can understand more and change your cookies preferences here. One of the most traditional ways to invest your money is to buy shares in individual companies. They form the asset class known as 'equities' and, historically, they have outperformed safer investments such as cash deposits and government and corporate bonds. Over the long term, shares can act as the real driver for growth in your investment portfolio.
How Can I Purchase Stock Directly From a Company?
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. Investors buy-in by transferring money from their checking or savings account. The company will establish minimum investment amounts, both for the initial purchase and for any subsequent purchases. The plan administrators batch the cash from those participating in the direct stock plan and use it to buy shares of the company at regular intervals and at the average market price. Companies may also offer a dividend reinvestment plan DRIP. These are similar to direct stock plans, except that they automate the process of buying more stock over the years.
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.
There are a few circumstances in which a person can buy stock directly from a company. The following is meant to cover some of these instances, which include direct stock purchase plans , dividend reinvestment plans DRIPs , and employee stock purchase plans ESPPs. This is when a person buys stock directly from the issuing company.
How to Buy a Stock
Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. Advertiser partners include American Express, Chase, U. Bank, and Barclaycard, among others. Do high brokerage costs deter you from investing in stocks of financially stable, profitable companies? Once companies list on a stock exchange, they employ the services of a transfer agent, who handles all administration related to share transactions — most listed companies use Computershare to provide these services. And one of the many services Computershare provides is the administrating of direct stock purchase plans for companies who want to sell their shares to the public without engaging a stockbroker. A direct stock purchase plan allows you to buy shares of a company through its transfer agent instead of through a broker. In essence, you cut out the middleman and save yourself a pretty penny in the process. Listed below are five well-known companies that have the most active direct stock purchase plans:.
How to Buy Stocks Online Without a Broker – Direct Stock Purchase Plans
Investing in stocks or equities lets you purchase a small part of an individual company. Choose from Canadian and U. Want to maximize your investment dollars? No fees or commissions apply. Read Related FAQs. Open a Practice Account to buy and sell stocks, risk-free. Open an account online or try out our actual investing site — not a demo — with a practice account. Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends are often quoted in terms of the dollar amount each share receives dividends per share or DPS.
