Benefits and Drawbacks of Buying Stocks Directly
from Companies
A lot of corporations are now “bypassing” brokers in the sense that they are offering
stocks directly to the investors—the buying public. Those who approve of DirectStock Purchase Programs...
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Benefits and Drawbacks of Buying Stocks Directly
from Companies
A lot of corporations are now “bypassing” brokers in the sense that they are offering
stocks directly to the investors—the buying public. Those who approve of DirectStock Purchase Programs (DSPP) cite the low commissions that this form of stockbuying offers. Some companies also tout low or no initial deposits for as long as the
investor commits to buying a certain amount of stock every month.
The problem is that while commissions are low, there are other fees that go along with
it that can often equal how much you would spend if you had bought it from a broker.
Sometimes, it can even exceed it. There are enrollment fees and fees for subsequent
purchases. You also pay a fee if you want to sell your shares.
Then there’s the voluminous paper work that you have to go through if you want to
apply DSPPs in various companies. You have to fill out each form separately and
study the statements that each company will send to you. Fi
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