Direct investing is the act of buying stock without a brokerage account. In today’s post-recession climate, more investors are wary of big-name investment companies and stock brokers. Investors want to invest on their own. They do not trust others to have their best interests at heart when managing investment accounts. That is why more and more investors want to invest in stocks without a broker. If you are one of those institutional-wary investors, learn how to buy stock without a broker in this post. Below, you will find a step-by-step direct investing guide on how to invest on your own.
Do Your Research
The first step to investing on your own is to start researching different types of investment options. There are a multitude of different stock options for investors to consider. Do you want to invest in penny stocks? Or, do you want to buy through a company’s direct stock purchase plan, like the one offered for Intuit stock? When buying stocks independently, you want to consider all your options. Research both penny stock options and direct stock purchase plans. Then, you will be in a better position to make the right investment decisions to make big gains on the stock market.
Finding Direct Stocks
Next, you will need to find direct stock purchase plan programs that catch your interest. But in order to do that, you need to know where to look. Most of the big, publicly-traded corporations have direct stock purchase plans. Start by looking at the largest companies trading on the NYSE, like Iron Mountain stock. Then, you can narrow down your selection to those companies that you wish to invest in. Once you have narrowed down your selection for DSPPs to invest in, you can move to the next step of direct investing.
Contact The Agent
The next step in learning how to buy stock without a broker is to contact the transfer agent associated with companies you want to invest in. When you buy shares directly from a company, you will need to register with the company’s transfer agent. First, reach out to the investment agent with questions about potential account fees, minimum monthly investment requirements and similar. Then, use this information to choose which direct stocks to invest in. Once you make your final selection to invest in a company directly, you can move on to the next step in the direct investing guide.
Register An Account
In order to buy stocks directly from a company, you will need to register an account with the company’s transfer agent. The transfer agent will need basic identifying information, like you name, address, bank account details and social security number. In addition, you will need to decide the monthly withdrawal amount that the company will take to invest on your behalf. Once you establish a direct investing account, you can continue to buy stocks on your own, without a broker, whenever you want. Create direct stock purchase program accounts with any companies you wish to buy shares of. Then, you will be able to invest independently on you own schedule.
Decide On Dividends
Finally, once you begin investing, you will need to decide what you want to do with investing dividends when your stocks are performing well. You can choose to receive monthly dividends checks or dividends checks on a quarterly basis. Or, you can elect to have your dividends reinvested to purchase additional shares of a company. Ultimately, this decision rests entirely with you. Just remember to specify your choice to the corporate transfer agent when establishing your stock buyer account at the onset. Once this final detail is in place, you will have successfully learned how to invest without a broker. That is sure to help your bottom line.
In order to protect your assets, you can choose to invest on your own by buying stocks directly from a company, without a brokerage account from Visium Asset Management. Use the step-by-step guide to direct investing above. First, do your research to determine how you will buy stocks without a broker and what types of investments you wish to pursue. Then, reach out to corporate transfer agents to set up investment accounts through direct stock purchase plans offered by top stock market performers. Once you register an independent investing account, decide what to do with your stock market dividends. As long as you know these steps, you can confidently say you know to buy stock without a broker. Then, you can become an expert investor in no time at all.