Buying stocks directly.Q I'm very interested in buying stocks [directly from the issuing company]? How do I get started? --Gwen Washington Norfolk, Virginia Norfolk is an independent city in the Commonwealth of Virginia, in the United States of America. With a population of 234,403 as of the 2000 census, Norfolk is Virginia's second-largest incorporated city. A You have selected a sound course of action to getting on the road to wealth accumulation. Whenever possible, you should always pay yourself first. The best way to start purchasing stocks as well as mutual funds directly is through your company's 401(k) plan. Your employer can direct a portion of your paycheck--up to $10,500 annually--into an array of such investment offerings as equity mutual funds and, in some cases, company stock. Of course, you can invest in stock mutual funds directly and purchase shares through automatic withdrawal programs in which you direct a given mutual fund company to take funds out of your savings or checking account--usually between $50 to $100 per month--to invest in the fund of your choice. Another way to purchase stocks directly from a company is through direct stock plans (DSPs) and dividend reinvestment plans Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. (DRIPs), accounts that allow you to buy shares directly from a company's headquarters. By using such plans, you avoid paying hefty heft·y adj. heft·i·er, heft·i·est 1. Of considerable weight; heavy. 2. Rugged and powerful. See Synonyms at heavy. 3. broker commissions that can eat into your total return. In fact, Netstock Direct, the leading Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the service for direct investors, has 1,600 stocks to purchase online. (Access the program through blackenterprise.com, at the site's Direct Investor Center) Recently, the service launched the innovative ShareBuilder program where investors can set up an online account and build a portfolio of stocks over time through automatic and periodic dollar-based investments. Another benefit: The program does not require investment minimums. --Derek T. Dingle Mail your finance questions to Ask B.E., BLACK ENTERPRISE, 130 Fifth Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent ., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011, or send an e-mail to dingled@blackenterprise.com |
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