How to Buy Stock Without a Broker
The easiest way to buy stock without a stockbroker is by opening an online trading account, which may require the account holder to put up cash to cover their actions. Find out how to buy direct stock from a company with help from a personal asset manager in this free video on investing in the stock market and money management.
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Hello, I'm Roger Groh with Groh Asset Management. Thank you for spending some time with me. Today we're going to talk about how you might be able to buy stock without going through a stockbroker. Well the answer is in the old days, you couldn't. You had to go through a stockbroker until 1974 when big bang happened and big bang opened up the exchanges to the discount brokers. The discount brokers then through a company called Thomas F. White's Securities developed the first online trading system which enabled you at your computer and at your leisure to go in and enter orders to buy and sell. Today most banks and brokerage firms have the same thing and if you want to get around having to speak with a stockbroker, the easiest way to do it is to open an online trading account. They might ask you to qualify yourself and providing financials initially or to put up cash to cover any buys or sells ahead of time. But nonetheless, once the account is setup you can go in and just type in whatever you'd like to do to buy and sell. There might be one other option, no pun intended for you, you can actually go directly to a company and buy direct stock from them. So those are called direct stock purchase plans and the difference is that in a direct stock purchase plan, you probably pay less commissions initially then you would if you were buying stock through a broker, maybe not as low as a discount broker though. There might be some other things that you think about in there such as gifting and which way is easier to do it. Any rate, those are the two ways either go to directly to the company and buy stock and you go to their website typically in a public company, type in direct stock purchase plans and up will come their info. Or you can go to your local discount or full service broker and buy stocks there through their online trading operations. I'm Roger Groh and thank you for spending a few minutes with me.