What Companies Can I Directly Invest In?

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To directly invest in a company, purchase stock from the company, contact a brokerage firm to purchase the stock, or buy stock through a profit-sharing program. Consider the cost of investing in a company through a brokerage firm with information from a financial consultant in this free video on money management and personal finance.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Have you ever considered buying a business? Hi, this is Roger Groh with Groh Asset Management. This morning we're here to talk about buying directly into companies. And there are two broad ways to go about that. One, if you are considering buying a private business, let's say your neighborhood gas station or perhaps your neighborhood manufacturing facility. You would actually be buying stock within that business and making a direct purchase in them. In a public company, it's a little bit differently. Frequently companies give the public the right to buy stock directly from them as opposed to going through your brokerage firm. The advantages differ. At the brokerage firms, frequently the commissions might be higher, on the other hand at the, going directly to a company, you find that there are fees involved, typically transaction fees. You would have to calculate both carefully to figure out from a money point of view which was better. If you were to buy stock directly from a business, the other advantage might be the transferability of that stock. Where if you were involved in a gifting program to a grandchild or grandson, it's a terrific way to go about it. Last but not least, if you're an employee of a business and you have a 401k plan, frequently employers give employees the right to buy stock directly. And that's a separate issue really focused on the pension and profit sharing area frequently tied to stock options. So I hope that helps, I'm Roger Groh with Groh Asset and thank you very much for spending time with me.


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