Can I Invest In Stocks Direct From a Publicly Traded Company?
by: Greggo0957
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Just discovered by two wall street executives is a stock picking "Robot" that can pick profitable stocks for you that have the potential of climbing in price. This Robot has been dubbed the name "Marl" has been showing some very favorable statistics as of late and has been tested by some very notable Wall Street executives and has been logging some pretty impressive stock picks. Read the following article on investing your money directly into a company without the help or assistance of a stock broker, and to learn more about the stock picking robot. You will be quite amazed.
There are some companies that will allow the average Joe investor to purchase stocks directly from a company. When the Securities and Exchange Commission was asked this question, they said that this is perfectly fine practice to do. This type of investing is called, Direct Stock Plans. It is also called a DSPP. The company can and may require that you already own stocks through your employment with the company. However, It is not a requirement of all companies.
You must be cautious however as the direct stock plan operates differently than buying stock through a stock broker. There will be no commission charged for these stock plans, but there can be a small fee. The other main difference is that the company buys and sells the stock at a given time. The investor cannot sell or trade these whenever you want to do so. The option would be for the investor to turn the stocks over to his/her stock broker to sell, but the broker cannot charge a commission. You may be charged a fee by the company. It all depends upon your agreement that you have with the company.
For instance If you have a favorite company that you like to invest in, like Southwest Airlines Company, IBM or other brand names in the United States you may be able to implement a Direct Stock Plan to purchase stocks on a regular basis. There is a list of stocks that you can review in your local library or you might be able to check out the company you are interested in by accessing the companies web site if they have one. If not try getting the company's phone number and calling them directly and asking for the department that would handle their request.
Another method you might consider for investing directly in a company is by way of the Direct Dividend Reinvestment Plan. It is commonly called a DRIP. The great advantage of this type of plan is that instead of receiving the dividends of your investment you can ask the company to agree to reinvest your dividends in more stock in that company. It is commonly referred to as a regular Direct Stock Plan with a reinvestment agreement. You may do the same reinvestment plan with your other stocks and mutual funds even if you do have a broker that may handle your stock investing for you.
One advantage of this type of private investing directly with a company is that if the company allows a private investor to purchase stocks directly this would allow you to set up a pay check withdrawal each pay period for the purposes of the stock plan. There are various advisory services that can assist you in locating these companies that do offer these direct stock purchase plans. I would highly suggest that you first find companies you would be interested in investing in and make an inquiry with the appropriate department that handles this type of private investing without a broker.
An advantage for you in contacting the individual company yourself is that it allows you the freedom to work with your own preferences and do a small amount of leg work. The company representative will give you the necessary forms and provide you with individual advice on how to set up pay roll deduction. In turn you can contact your banking institution, employer human resources or bill payer and set up the account.
It will completely surprise you the number of very high quality companies that will allow you to buy stocks direct by setting up a plan. The wide range of prospects include, airline companies,utility companies, fast food stocks, entertainment and retail stocks and wholesale companies. The companies are varied and diverse.
If you have a friend or family member that has invested in a solid company that has shown solid performance would be a terrific way to begin this type of investing. Also, a good way to start investing if you haven't done so before.
The only thing that you could possibly lose would be your time. The time it takes in gathering this information could have a big payoff. It will save you large commissions and fees and provide you with a relationship that could be longstanding with your favorite company, and could also be a very profitable relationship as well.
About the Author
Michael Gregory is a 30 year veteran Real Estate investor, who believe in diversification and multiple streams of income. Mr. Gregory has recently discovered a stock picking robot and wants you to know more. You can do so by going to http://www.WarriorOnWallStreet.com
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Article Author : Greggo0957