Bypassing the Broker: AAII's 2006 Guide to Direct Purchase Plans
by Maria Crawford Scott
Looking for a low-cost, low-minimum avenue to start investing in individual firms? Currently, over 460 companies in the U.S. offer direct purchase plans, allowing you to buy shares directly from the company without a broker.
Direct purchase plans are a form of dividend reinvestment plan, but in a traditional dividend reinvestment plan you must first enroll in the plan in order to participate, which means buying your initial shares through a broker. Direct purchase plans allow you to completely bypass brokers.
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