Utilizing Shareholder Services With Direct Stock Purchase Plans

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With direct stock purchase plans, shareholder services are utilized by potential investors to get a prospectus on the company and the stock. Find out about the tax side of a direct stock purchase transaction with information from a financial analyst in this free video on the direct stock purchases.

Part of the Video Series: Stock Market Tips & Facts
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Video Transcript

Have you decided that you want to make an investment directly in a company and actually buy shares from that company? Hi this is Roger Groh with Groh Asset. Whether you're reinvesting dividends or actually putting new cash in, if you've made the decision to buy stock directly from a company, once you call them to do that, the group that you call are shareholder services. Sometimes that group is within the company that you call and sometimes they've outsourced that to third parties that do nothing but work with investors and their companies that they're considering putting money into. Which is better? I really don't know. It depends upon the group and the company specifically that you're talking about. The key thing though is that they should be able to provide you with a prospectus about the stock that you're considering putting your money into and explain all of the details of the transaction. How it works, how long it takes and what it costs for example. And last but not least, the tax side of any transaction. What else should you consider? Well not only in the United States does this exist, but in other countries also. You need to be very careful what you're actually buying. So I hope that helps, I'm Roger Groh and that's a little bit about shareholder services. Thank you very much for spending time with me.


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