Often, only one share is required to enroll in a DRP. Roughly 300 companies will sell initial shares directly to investors, bypassing the broker completely. Most plans also allow DRP participants to send in cash to purchase additional shares, in amounts from as little as $10 to as much as $300,000 dollars per year (a typical minimum is around $250). Some companies purchase shares for investors at a discount, usually from 1% to 10%. Also, there are approximately 200 companies that allow DRP investors to set up periodic investment transfers from their bank account into their DRP account.
The following Web sites can give you more information on the details of how DRP plans work, as well as listings of companies that offer DRPs, with their specific plan minimums and fees.
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