This isn't a retirement question but if I wanted to buy stock without a broker involved where would i go?I really want to start investing in individual stocks that I've been tracking but don't want to pay a broker if I know what I want to buy. I have money invested in mutual funds but never purchased ind. stocksAny advise or suggestions would be greatly appreciated.
I know of only two ways to buy a stock without a broker 1) If you know someone personaly who wants to sell then you can make private arrangements to transfer the stock to you. Usually this requires the seller going to his/her bank to have them verify his/her signature, maybe a notary too, and contacting the stockholder services dept of the company to make the transfer. The seller has to have the certificate(s) to deliver to you. 2) The other way is to buy shares directly from the corporation as in a DRIP plan. Most require that you already own at least one share, but I believe there are few which do not.Method 1) does not imply that you can put an ad in a newspaper and advertise for the stock you want. I would check with the SEC before I tried that.Joe Varga
>This isn't a retirement question but if I wanted to >buy stock without a broker involved where would i> go?> I really want to start investing in individual stocks >that I've been tracking but don't want to pay a> broker if I know what I want to buy. I have money >invested in mutual funds but never purchased> ind. stocks> Any advise or suggestions would be greatly >appreciated. Some companies allow you to buy shares directly from them once you already own some. Beyond that, you've got the major problem of finding a seller--that's what a broker is for. Online you can get some pretty low commissions, though.
<<I really want to start investing in individual stocks that I've been tracking but don't want to pay a broker if I know what I want to buy>>Joe gave a good reply; I'll just add that there may be some confusion here as to the functions of a broker. Some provide services that include helping you choose (or choosing for you) the investments you make, and others don't. The ones that don't provide this service (which you indicate you don't want) provide other services: effecting the transaction, record keeping, tax reporting, custodianship of certificates etc. As the Motley Fool has documented extensively, the advent of discount brokers permits you to pay for these important services without paying for the advice you don't want. And at many brokers the discount prices are so low that these services are a real bargain. That's not to say DRIPs are a bad idea if they suit your investment needs, only to point out that you're not necessarily wasting your money when you pay a discount brokerage fee.Kaye Thomas, authorFairmark Press Tax Guide for Investorshttp://www.fairmark.comIncludes a new guide to estimated tax
Check out Netstock Direct web site for a list of DSP companies.That's http://www.netstockdirect.com
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