Features of Direct Stock Purchase Plans

Romen esko

Newbie
3 0
Hello Friends,

Stocks in some of America’s most profitable companies can be bought without opening a brokerage account in other words, sans commissions thereby enabling you to keep more of your hard-earned money. But you wouldn’t know this if the mainstream financial media is your only source of investing information.
Minimum investment amounts are variable, and can be adjusted to meet your needs. Typically, they range between $25 and $2,500.
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. If your purchase amount doesn’t buy you a full share, you get fractional shares, which still earn dividends.
Dividends can be reinvested.
The plans are cost effective, at low or no cost, if the company pays the fees.
Fees are charged in all plans. Generally speaking, fees are for:
Setting up the account, which can cost between $5 to $20.
Buying shares. Transaction fees range from $0.03 to $0.10 per share.
Reinvesting the dividends. Charges usually are 5% of the amount invested up to a maximum of $2.
Selling shares. In most cases, a transaction fee of $15 plus $0.12 per share sold is levied.

Thanks And Regards.
Romen Esko :)
 
 
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