How To Buy Stocks For Free With Zero Commissions

Some companies allow you to buy and sell their stock directly from them. If you choose this method, you will not have to pay any commission to a broker. This is great for stock market beginners and those people who want to buy just a few shares. Many US companies have this sort of plan which is called a Direct Purchase Plan. Many top corporations such as Chevron, Pfizer, JP MorganChase. and others have this type of direct purchase plan for their stock.

It is against the law for companies to advertise these plans so you need to find them yourself. You might contact the investor relations department of the company you wish to buy stock of to find out whether they will allow you to buy their stock directly from them.

When you find a company that does have a direct purchase plan, you should request a prospectus about the program to find out what its limitations are. Some programs require that you already own some stock before you are allowed to purchase more through the program. Many companies allow you to buy more shares with no commissions with the dividends you earn on your existing shares.

If you end up enrolling in their program, you will get a statement every time you make a transaction with them and you will get a 1099 tax form at the end of the year detailing your activity.

Buying stock through a direct purchase plan is a great way to get involved learning how to buy stocks for beginners. Stocks for beginners is something that you will need to invest a lot of time researching and this is just another of the many ways to get involved.

No comments: