How to Buy Stock Without a Stock Broker

Buying stocks without a stock broker is relatively easy to do, allowing the investor to build a position within a company without loss to brokerage commissions. An investor can invest directly with a company through the company's direct purchase plans. Dividend Reinvestment Plans (DRIPS) allow an investor to invest all or a portion of their dividends back into the company towards additional shares. Direct Purchase Plans (DPPS) allows you to buy stock directly from the company, no broker needed.

Instructions

1. Research: As with any investment, research is important to any informative investment decision. Become familiar with the past, present, and future plans of any company you believe to have investment potential. Request the company's prospects to review the details of the company's direct purchase plan since plan terms and conditions differ.

2. Meet Requirements: Majority of these programs require the investor hold at least one (1) share of the company's stock in their name. This can be easily done with the help of such companies as Oneshare.com, which will allow you to buy one share of stock with a small transfer fee. Some companies will allow you to make a direct initial investment (some as low as $150.00) in substitute of owning one share.

3. Enroll: Once you have the certificate of one share, or have made your initial investment - the only thing left to do is to complete the enrollment form. Contact the company's transfer agent or program administrator for an enrollment package. Complete, submit - and you're enrolled. More companies are offering the enrollment service online for even easier enrollment.

Resources

• DRIPS
• Oneshare.com
• stock research
• Preferred Stocks vs Common Stocks