How to buy stocks from a company
Why Zacks? Learn to Be a Better Investor. Forgot Password. Until recently, private stocks were for the rich only.
I Want to Start Buying Stocks—But Where Do I Start?
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:. Whenever you choose any investment, analyze the company and the industry carefully in terms of profitability, future outlook, and whether the investment is in line with your goals and risk tolerance. If you choose to invest in individual companies, be sure to invest across a range of industries for a diversified portfolio.
All Rights Reserved. Sign in. Forgot your password? Get help. Password recovery. Money Crashers. About Money Crashers. Recent Stories. Read more. Advertiser Disclosure X Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers. Premo Sewnunan. Views Share This Article. Join Our Facebook Group. Dig Deeper. Investing Stocks. Follow MoneyCrashers.
Trending Articles. Become a Money Crasher! Join our community. Share this Article. Buying Stocks Without Using a Brokerage 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. Features of Direct Stock Purchase Plans Minimum investment amounts are variable, and can be adjusted to meet your needs.
Payments can be made by check, automatic bank debit, or a combination of both. You can schedule weekly or monthly purchases, which allows you to dollar-cost average and potentially reduce risk.
Plans allow you to invest in small amounts, instead of by number of shares. Dividends can be reinvested. The plans are cost effective, at low or no cost, if the company pays the fees. Buying shares. Reinvesting the dividends. Selling shares. Premo Sewnunan Premo views investing as the science of making money.
He has four years experience in stock investments, and shares his insights as a way to give back and contribute. He lives in Durban, South Africa and enjoys the great year-round weather.
Next Up on Money Crashers. Are Online Degrees Worth It? Latest on Money Crashers. Sign Up For Our Newsletter. See why , people subscribe to our newsletter. Make Money Explore. Manage Money Explore. Save Money Explore. Borrow Money Explore. Protect Money Explore. Invest Money Explore.
To buy a stock, you'll want to evaluate the company as an investment, decide how much you want to invest and place a stock buy order. You can buy stocks. Here\'s how to purchase a stock, either through a broker or from a company.
In order to buy stocks , you need the assistance of a stockbroker who is licensed to purchase securities on your behalf. However, before you make a decision on a stockbroker, you need to figure out what type of stockbroker is right for you. The only interaction with an online broker is over the phone or via the Internet. Cost is usually based on a per-transaction or per-share basis, allowing you to open an account with relatively little money.
If you felt burned by the stock market following the financial crash of , you are not alone.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.
How to buy shares online
Why Zacks? Learn to Be a Better Investor. Forgot Password. When you bypass brokers by purchasing shares from a company, you save money on commissions. Plus, these plans typically allow you to invest with small amounts of money. If a company offers a direct stock purchase plan, it will be available through its transfer agent, a firm that handles such securities transactions for the company.
How to Buy Stocks Online Without a Broker – Direct Stock Purchase Plans
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. You can purchase stocks directly through the company.
Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers.
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.
I Want To Buy Shares In An Individual Company. What Do I Do?
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. Both are possible, and can also be fun, if you select the right stocks. You can make a profit if your share pays dividends or its price increases. This is one of the best long-term investments. Have your friends ever talked about investments or the stock market, and you had no clue what any of it meant? Don't worry, once you start investing and learning more about it, this won't happen again. You'll understand better how the stock market works and how it influences the economy, as well as your everyday life. Have you ever wanted to sit in the same room with Warren Buffet, and participate in a Berkshire Hathaway annual meeting? If you buy some Berkshire shares, you'll have the chance, all you have to do is master the buying of the shares. First of all, you need to find a good online broker. Brokerchooser will help you here: get a free recommendation by answering a few questions, or read further to get a general broker recommendation.
How to Buy Stocks
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.
