How to Directly Purchase Stocks Without Using Stockbrokers

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Directly purchase stocks without using a stockbroker by investing directly with the investment bank or by purchasing stock directly from the company. Pay less of a fee by avoiding working with stockbrokers with tips from an investments manager in this free video on investing.

Part of the Video Series: Stocks, Bonds & Investments
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Video Transcript

So how do you purchase stock directly without using a stockbroker? It's actually quite simple. The investment banks and so forth that issue the certificates, you can basically look them up and see which equities they service and that they issue, and you can buy directly with the investment bank. A lot of times, that will just be a number of dollars per month or per week that you pay in and they'll just issue shares as they can pay for them. The other way is to go directly to the company, and you'll look up the company name and most commonly, these days, you look on the Internet and find the company information. They will have an investor relations area, and that's something where you'll find out what the requirements are. Usually, to buy the stock direct, they'll require a minimum number of shares upfront. Some are more than others and, of course, the stock costs differently, depending on the company. But if you research the companies individually that you might want to invest in, you'll find that they all have their own internal programs so that you can invest directly with them without using a broker. And again, there is no broker, no brokerage fee assumed. There will be, more than likely, a small fee assessed by the company that's issuing it just for their time and effort to do that for you. But it's much lower than anything you would find in a brokerage house.


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