How to buy shares in a company directly

With the ease of online investing, buying shares of a company has become a relatively simple way to build a nest egg or start a retirement fund. Investing in a company in your own country is typically fairly straightforward — you may even be able to buy your shares directly from the company and save yourself some money on broker fees and commissions. If you want to invest in foreign businesses, however, you'll likely have a few extra hurdles. With a tender offer, you might even be able to get shares of a company before it goes public. While this is a relatively risky investment, the potential returns can be significant.

Investing directly in shares

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. Several well-known companies will sell stock directly to individual investors. Most companies that offer this kind of purchase option don't charge investors a commission , and if they do, the commission or service charges is very low compared to buying stocks through a broker.

If you're buying a very small number of shares and want to minimize your costs, a direct stock purchase is a great way to go.

Investors who own shares in a company with a dividend reinvestment plan have the option of registering with the company and participating in the plan. Instead of receiving dividends from the company, DRIP participants' dividends go directly toward buying more stock in the company.

As with direct stock purchases, there are often no commission charges associated with DRIPs. These shares are given directly from the company, and no commission fees are charged. These stocks can go directly into a retirement fund, so there's usually an opportunity to participate in ESPPs with untaxed income; in these cases, money is deducted from an employee's salary. Dividend Stocks. Stock Trading. Retirement Planning. Your Money. Personal Finance. Your Practice.

Popular Courses. Investing Stocks. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Articles. Partner Links. What Is the Definition of a Fractional Share? A fractional share is a share of equity that is less than one full share, which may occur as a result of stock splits, mergers, or acquisitions. What Is Portfolio Income? Portfolio income is money received from investments, dividends, interest, and capital gains.

It is one of three categories of income. Automatic Investment Plan AIP Definition An automatic investment plan is an investment program that allows investors to contribute funds to an investment account in regular intervals.

Stock A stock is a form of security that indicates the holder has proportionate ownership in the issuing corporation.

To buy a stock, you'll want to evaluate the company as an investment, decide a full-service broker, and some companies allow investors to buy stock directly. There are a few circumstances in which a person can buy stock directly from a company, including direct stock purchase plans, DRIPs and.

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. Several well-known companies will sell stock directly to individual investors. Most companies that offer this kind of purchase option don't charge investors a commission , and if they do, the commission or service charges is very low compared to buying stocks through a broker.

A corporation issues stock to represent ownership interest in the company, making the owner a shareholder.

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.

How To Buy Stocks: Complete Field Guide for Investors

Achieving this is not easy, but you have to start somewhere. Investing in shares online is one of the best ways to reach this goal. And the good news is you that can do all of this completely online, from the comfort of your own home. In this article, we will explain jargon-free, in plain English, how to buy shares in a company. People usually ask about how to invest in a company because they either want to make money profits or gain some trading experience.

How to Buy a Stock

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. In turn, he or she earns a commission, normally several cents per share. Online trading sites typically charge lower commission fees, because most of the trading is done electronically. A limit order is when you request to buy a stock at a limited price. While purchasing stocks through a broker has its advantages, there are other ways to buy stock.

These are some options to investigate. Undoubtedly there are others.

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on TheTokenist. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website.

How to Become a Shareholder With a Company

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. Direct Stock Plans — Some companies allow you to purchase or sell stock directly through them without your having to use or pay commissions to a broker. But you may have to pay a fee for using the plan's services. Some companies require that you already own stock in the company or are employed by the company before you may participate in their direct stock plans. You may be able to buy stock by investing a specific dollar amount rather than having to pay for an entire share. In that case, you could have your checking account debited on a regular basis to make investments in the plan. Some plans require a minimum amount of investment or require you to maintain specific minimums in your account. DSPs usually will not allow you to buy or sell your securities at a specific market price or at a specific time. Rather, the company will purchase or sell shares for the plan at established times — for example, on a daily, weekly, or monthly basis — and at an average market price. You can find when the company will buy and sell shares and how it determines the price by reading the company's disclosure documents.

How to buy shares online

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.