How to Buy Direct Stock

By Larry Parr

  • Overview

    When you buy stock directly from the company that issues the stock, rather than buying it from a stock broker, you save money on broker's fees. You also do not need a minimum trading account, as you do with most brokers. Additionally, most companies allow you to purchase partial lots (less than 100 shares at a time) when you buy direct from the company, giving you greater freedom in choosing how much you want to invest at a time. Direct purchase stock can be referred to as no-load stock, direct purchase plans or direct investment plans.
    • Step 1

      Decide which company or companies you wish to purchase stock from directly. Research each company, looking especially at the company's past track record, its management and any new products that it may be releasing soon. You should feel confident that the stock of the companies you are looking at is a sound investment.
    • Step 2

      Contact the Investor Relations department of the company where you wish to buy stock. See the Resources section for the address of a website that can help you do this, but you can email the Investor Relations department of the company yourself. Simply tell them you are interested in purchasing stock directly. If the company has such a plan, they will be happy to explain it to you.


    • Step 3

      Follow the directions that the company sends you. You can set up plans to purchase a set dollar amount of stock each month, or you may wish to purchase stock at random intervals. Most companies allow you to purchase fractional shares if you wish to invest a set amount each month.
    • Skill: Moderately Easy
    • Tip: Do not be intimidated. Companies that sell stock direct very much want to help you buy their stock. The process is simple and inexpensive.

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