There are a few circumstances in which a person can buy stock directly from a company. The following is meant to cover some of these instances, which include 澳洲幸运5官方开奖结果体彩网:direct stock purchase plans, 澳洲幸运5官方开奖结果体彩网:dividend reinvestment plans (DRIPs), and 澳洲幸运5官方开奖结果体彩网:employee stock purchase plans (ESPPs).

Direct Stock Purchase Plan

This is when a person buys stock directly from the issuing company. Several well-known companies will sell stock directly to individual investors. Most companies that offer this kind of purchase option don't charge investors a 澳洲幸运5官方开奖结果体彩网:commission, and if they do, the commission or service charge is very low compared to buying stocks through a broker. If you're buying a very small number of shares and want to minimize your costs, a dire𒁃ct stock purchase is a great way to go.

Dividend Reinvestment Plans

澳洲幸运5官方开奖结果体彩网:Investors who own shares in a company with a dividend reinvestment plan have the option of registering with the company and participating in the plan. Instead of receiving 澳洲幸运5官方开奖结果体彩网:dividends from the company, DRIP participants' dividends go directly toward buying more stock in the company. As with direct stock purchases, there are often n🐼o commission charges associated with DRIPs.

Here is how a DRIP works:

Example
Company A pays a dividend of $0.50 per share on an 澳洲幸运5官方开奖结果体彩网:annual basis, and its stock is worth $40 per share. A DRIP participating investor owns 200 shares of Company A's stock. Instead of receiving a $100 ch🉐eck each year in dividends, the investor can buy 2.5 shares ($100/$40 per share) of🧸 stock. These shares are given directly from the company, and no commission fees are charged.

Employee Stock Purchase Plans

For employees that work for 澳洲幸运5官方开奖结果体彩网:public companies, ESPPs provide a great chance to b❀uy the company's stock at a discount. Employees are limited in the number of shares they can buy, and it's not always a good thing to increase your holdings in your employer's company – it's a bit like putting all of your e🍨ggs into one basket.

In general, ESPPs offer employees the chance to buy stock for 85% of the 澳洲幸运5官方开奖结果体彩网:market value. These stocks can go directly into a retirement fund, so there's usually an opportunity to partiꦇcipate in ESPPs with untaxed income; in𒆙 these cases, money is deducted from an employee's salary.