Buying Straight From the Source: AAII's 2008 Direct Purchase Plan Guide

    by Maria Crawford Scott

    Want a simple, low-cost way to invest in a firm?

    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. In addition, a growing number of foreign firms also offer direct purchase plans through their ADR programs (for more on these plans, see page 20).

    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.

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