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.

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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.

To read more, please become an AAII Registered User or CLICK HERE.

→ Maria Crawford Scott

June 2007 Issue

Mutual Funds
Face Off: Mutual Funds vs. ETFs
Exchange-traded funds are America's "financial idol." But what do ETFs have that index mutual funds don't--and vice versa? A side-by-side comparison reveals little difference.

Stock Strategies
Investing in BDCs: Private Equity for Public Shareholders
Private equity is a term we're hearing a lot about these days, with many companies large and small going private. How can you get in on a piece of the action? A look at Business Development Companies.

Features
Going Straight to the Source: AAII's 2007 Guide to Direct Purchase Plans
Direct purchase plans let you go straight to the source to buy company shares, which means you can buy stock with little or no commission. This year's annual guide lists over 430 plans.

Stock Screens
Dividend Reinvestment Plans: Value Investing With a Dividend Boost
Dividend reinvestment plans offer investors a low-cost approach to investing in dividend-paying stocks. How should you screen these firms? A look at a high-yield approach.

Investment Newsletters
Recipe for Picking Winners: Add Time to a Pinch of the Past
Past performance isn't a guarantee, but it serves as an important tool when choosing an investment adviser--if you focus on track records of eight to 10 years, or longer. A look at the evidence.

Offbeat Offerings
Offbeat Offerings: Warrants
An investor reference for products that are not your typical offerings. This issue's focus in on warrants.

Hot Links
In-Depth Information on Major Market Indexes
Index fund investors are faced wtih a huge variety of indexes to choose among. To find out more about the various underlying market indexes, check out the sites listed here.

First Cut
The First Cut: Insider Activity
A starting point for investors. This issue's focus is on companies with insider buys that exceeded insider sells over the last six months.

Member News
Member News: Our Annual Update on What's Going on at AAII
An inside look at new developments at AAII and in our local chapter network over the last year.

Departments
Briefly Noted
Current news items of interest to individual investors.

Departments
Letters to the Editor
Member questions and comments on recent AAII Journal articles.

by Maria Crawford Scott

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June 2007 Issue