How to Buy Stocks Without a Broker

I’m going to be talking about how to buy stocks with out a stock broker? This is a pretty much pretty easy process since they avenue is to go directly with the company itself, its pretty easy process most corporations have websites that you can sign up online and actually I have an account where you transfer the money from say a checking account to the corporation and the corporation will purchase shares for you, very easy process, simple. Now letting the company to the work for you, it's valuable because you don't really have to pay any commissions there, there are some draw backs to it, let go thru some of the things real quickly. One of the things the company can provide you is what’s called a "drift" or a "dividend re-investment plan".

The dividend re-investment plan is where they not only purchase the shares for you but fractional shares and those fractional shares add up over time and being able to longevity of time where your purchasing shares today at a low price and then over a longer time that stock prices increasing, there is where your benefits is made. Now again online is where you open up thru a corporation and the, you enroll in that program. The tricky thing can also be is that you have already own a share of stock to be able to participate, so that’s requiring going to a broker to open up an account, buying the shares or a share, paying the commission and then having that certificate mailed to you which there is a re-organization fee for and then you can enroll yourself in plan of a company at that time.

Now companies purchase usually at end of day prices which tend to be higher, where as a broker trim you may only paying $9.95 for a trade but yeah, you can determine when you place that trade so if you purchase a 100 shares of a stock and it went down 50 cents you going to save a lot more paying the 99 than you were for the closing price, so there's a little bit of determination to make there. Any information provided here is for general information purposes only and should not be consider an individualize recommendation or personalized investment advice, any investment strategies mentioned here may not be suitable for everyone.