Simple Ways to Buy Stock Online
The Internet makes a lot of things easier, and investing is no exception. As an investor, you have a number of ways to invest online, from buying a basket of shares through your favorite mutual fund and setting up an automatic monthly transfer from your bank account to buying shares of a single company directly.
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Mutual Funds
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Many mutual funds allow investors to set up and put money in their accounts online. You can apply for an account at the mutual fund website, then fund that account with a direct electronic transfer from your bank account. Once the account is set up, you can log on to review your account balance and see how your funds are doing.
Online Brokerage Accounts
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If you prefer to purchase individual shares of stock, you can do so through an online discount brokerage firm. The commissions charged by these online discount brokers are lower than the ones charged by full-service firms, which provide investment advice and guidance as well a stock trades. Online discount brokerage firms are best suited for investors who are comfortable researching their own stocks and making their own investment decisions.
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Direct Stock Purchase Plans
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Some companies allow investors to purchase shares of stock directly online, without paying a brokerage fee. These direct stock purchase plans allow investors to set up recurring monthly deposit and use that money to accumulate shares of stock in the company. While you should never buy a stock solely because it provides a direct stock purchase plan, it is one factor to consider when making an investment.
401k Plans
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Many employers provide their workers with online access to their 401k plans. If you have online access to your workplace retirement plan, you can use that access to make changes to your existing asset allocation, or change the direction of future contributions. You can also use your online access to review the balance of your 401k plan, see how much you have contributed year-to-date and program-to-date and even track the performance of the funds available within the plan.
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References
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