You can do stock investing without brokerage fees
You can also invest in bonds directly with the U.S. Treasury without any commissions paid to the brokers.
You may be one of the many individual investors who now own no-load mutual funds, or you may have given some thought in gettiing started in stock investing.
The thought of paying high management fees and front end fees on mutual funds may be a bit disconcerting as it can prevent you from dollar cost averaging or buying more shares at lower prices. .
It is possible to do Stock Investing
The major 500 companies in the Standard and Poors Index all offer Dividend Reinvestment Plans.
A Dividend reinvestment Plan allows investors to buy their first share and each following share without the help or the fees paid to brokers. Some companies may levee a small fee to cover expenses.
These are solid Blue chip companies such as Wal-Mart,General Electric and major banks, that lets you buy shares directly, without commissions, once you own your first share, you can reinvest the dividends into more shares.
It also entirely possible to participate in stock investment online with the DRIPS offered by several of the better known companies.
One of the best features of this low-cost investment plan is that it allows you to invest regularly, taking advantage of dollar-cost averaging with a wide range of dollar amounts as you are issued partial stocks without paying any commissions.
These low cost methods are a great way for your kids to begin stock investing. There are variations of these investing plans and many allow you to authorize direct debits from your bank account.
Although it iis entirely possible to Generate large ROI, sometimes in as little as an hour with minimal risk, it should only be done with disposable income.
Many benefits of Stock investing with DRIPs
Have you ever thought about owning a part of the mega-sized profits of your banks but were intimidated by number of shares that necessary to offset the necessary brokerage fees. It may be possible to begin stock investing in major corporations for as little as fifty dollars. .
Investing in DRIPS is one of the easiest and most cost effective way to own a piece of a blue-chip company and there are benefits , both to the company and investors. .
To the company, it creates brand loyalty and provides and continuous source of capital while broadening the shareholder base.
To the investors, very little capital is required with better return than mutual funds as you create a diversified portfolio of blue chip companies.
You are never pressured to trade or generate commissions for the brokers.
You may also be offered exclusive benefits from the companies, such as discounts usually between 3 to 5% on the purchase of additional shares or the reinvestment of dividends or repurchase rights and gratuities.
Stock investing with DRIPS can be seen a supercharged method for building a well balanced portfolio of solid stocks that can assist you in retiring in style.
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