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Hello my name is Robert Evans (founder) of the I found that a lot of these companies also offered a direct purchase plan if you did not own the first share yet. Even better the start up fee was only $10.00 or less You can imagine my Stockbrokers response when I asked about this type of investing. He knew I had Discovered the Secret Stockbrokers don’t want us Needless to say I do not have that broker anymore! Just think about it for the cost of taking your family out one night a month you So I created the A Plus Stock Research Center with a database that at this time has over 180 companies that you can buy stocks directly from without going through a broker and we are updating it monthly. At this time 80 companies on our list were listed in the 2007 FORTUNE 500! Well you have made it this far now you are saying to yourself “What’s the catch” or “This is too good to be true” all of this information for free? We are a small start up company trying to get this information out as cheaply as possible so everyone can take advantage of it. Unfortunately we still have to pay the following costs.
So act now to Discover the Secret!, and share the secret with your friends, family,and co-workers. Q: What are direct investment plans? (DSPP) A: Direct Stock Purchase Plans permit investors to make their initial purchase of stock directly from the company. Thus, the main distinction between a simple DRIP and a DSPP is that the former requires you to already be a shareholder in order to participate; the latter permits investors to make their initial purchase directly from the company. Q: What are Dividend reinvestment plans? (DRIPS) A: In general, these plans will reinvest dividends to buy more shares of the company stock. What is even better, these plans give shareholders the ability to buy more shares directly from the company. That way the investor does not have to pay brokerage commissions (except for small service fees in some cases). Some plans require that dividends must be reinvested. Others permit partial dividend reinvestment or even allow no dividend reinvestment. Q: Can I enroll in the plan if I am already a shareholder of the company? A: Yes, easily. But, if the shares are registered in "street name," the company will not recognize you as a shareholder. In that case, ask your broker to reissue some or all of the shares in your name. Then, contact the transfer agent and request the enrollment forms for the DRIPs of the companies in which you would like to invest. Q: How much will I have to invest, and how often? A: Once you open a DRIP, you do not have to invest any money at all-unless and until you want to. But if you do wish to invest additional funds, most plans invest on specified investment dates. Some plans invest DRIP money on a weekly basis; others invest once a month and a few plans will only accept investments on a quarterly basis. Since the transfer agent holds your funds until the investment date but you do not get any interest on them, it makes sense to invest your money as close to the plan cutoff date as possible-without cutting it too close. Most companies' cutoff date is five business days prior to the investment date. For others, it's 10 business days, or even the day prior to investment. (This information can be found in the company's prospectus.) Q: How can I sell shares? A: Once you have accumulated a round lot (100 shares) within a direct investment plan, it makes sense to ask the transfer agent to have those shares certificated and sent to you. Some transfer agents take longer than others, and at best it will take a week or two. (If you have a single share in storage at home, ask that 99 shares be certificated so that you can get rid of that one share when you sell a round lot.) With that certificate immediately available to you, you can call your broker and place a sell order whenever you wish. However, if you prefer, you can ask the transfer agent to liquidate shares within the plan and send a check. In most cases, you will benefit from a lower institutional commission rate, but you may be better off by using a discount broker (commission rates are typically 10-12 cents a share). Keep in mind if you use the transfer agent, you may miss selling at the best price because liquidations may be transacted on a specific date according to the plan and, therefore, you may have to accept the price in effect on that date. Q: Is there any reason why a certificate for one share would be better than book entry to open an account? A: In most cases, it is much more convenient for you to have your account opened on a book entry basis. That way, you will not have a certificate for a single share to keep track of and, presumably, to sell some day. Contact Us Back to Top Don't wait Get Started Now! |
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