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| Avoid Transaction Fees--Buy Shares Direct |
Submitted by:
charles21 06/06/2008 5:31 PM
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Many public companies nowadays allow you to purchase shares directly from them (http://www.dripcentral.com/onlinebook/dripguide_chapt02a.shtml ). You can avoid broker fees and in some cases transaction fees completely. For example, at Home Depot, you can purchase shares directly from them (http://ir.homedepot.com/purchase.cfm?DSPP=DSPP ). There is a small transaction fee, but it’s smaller than what you’ll find at most, if not all, brokers (particularly if you’re buying a small number of shares).
You can also enroll in their “DRIP” program (DRIP stands for “Direct Re-Investment Plan”). DRIPs allow you to purchase additional shares of stock directly through the company, avoiding brokerage fees (I believe for many companies, you must first own one share of the company’s stock before you can enroll in their plan). Check out the following articles for more information on DRIPs:
Motley Fool: http://www.fool.com/DRIPPort/HowToInvestDRIPs.htm
DRIP Central: http://www.dripcentral.com/onlinebook/dripguide_chapt01.shtml
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