Going Straight to the Source: AAII's 2007 Guide to Direct Purchase Plans

    by Maria Crawford Scott

    Want a simple, low-cost way to invest a small amount of money in an individual company?

    One approach is to go straight to the source. Currently, over 430 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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