How to Buy Stock Directly
Investing in the stock market is a great way to make your money work for you. Many people are hesitant to buy stocks because it can be hard to figure out where to start, and buying stocks through a broker could be expensive due to high fees and commissions. If you'd like to start investing in stocks, one great option is to buy your stocks directly from the companies that are issuing them. You'll save money on fees, and can usually invest any amount you choose, with very low minimums.
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Instructions
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Decide which companies you may be interested in investing in. When you're new to the stock market, a great way to get your feet wet is to buy stock in companies whose products you like. Some popular choices are food and soft drink companies, electronics, and entertainment.
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Determine whether these companies sell stock directly. Once you've made a list of potential companies, check each company's website to determine whether or not they offer stocks for sale directly. If they do, be sure to check out what the terms of sale, including any fees or minimums required by the company.
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Do you research. Check out the companies you are considering on any investment or financial services website to determine whether the company is a sound investment. Look into the value of the stock and its price history. Research any news available about the company that may effect the stock's value.
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Compare your options. Measure the value of each stock against its terms of sale and minimum investment to determine which stock is the best investment for your portfolio.
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Make your selections and buy your stock. Each company that sells stock directly will explain exactly how to purchase shares on their website. Generally, you can buy your shares online with a direct debit of your bank account, or you can download and mail paper forms along with a check.
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Manage your investments. Keep an eye on the value and changes to any stock you own. Watch the news for anything related to companies in which you own shares, as many factors can effect the value of your stock. Finally, if you'd like to sell your stock, be aware of any fees the company charges so you don't eat away at your profits.
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Tips & Warnings
Start small. Buying direct is a great way to get your feet wet in the stock market because minimum investment amounts are often smaller than when buying through a broker.
Don't buy stock in a company simply because you like their product. Liking the product offerings of the company is a good start, but you must do your research on the stock's performance as well.
