How To Own Shares In A Company

How To Own Shares In A Company

Shares are a part or portion of a larger amount which is divided among several people, or to which several people contribute.

How To Own Shares In A Company?

To buy stocks, you’ll typically need the assistance of a stockbroker since you cannot simply call up a stock exchange and ask to buy stocks directly. When you use a stockbroker, whether a human being or an online platform, you can choose the investment that you wish to buy or sell and how the trade should be handled.

Buying Stocks Via a Direct Stock Purchase Plan

Sometimes, companies (often blue-chip firms) will sponsor a special type of program called a direct stock purchase plan (DSPP).

2 DSPPs were originally conceived generations ago as a way for businesses to let smaller investors buy ownership directly from the company. Participating in a DSPP requires an investor to engage with a company directly instead of with a broker, but every company’s system for administering a DSPP is unique.

Participating companies will offer their DSPP through transfer agents or another third-party administrator. To learn more about how to participate in a company’s DSPP, an investor should contact the company’s investor relations department.

How to Trade Once You Have a Broker

Once you’ve chosen your brokerage platform, you will need to establish and fund an account before you can begin trading. Today, it’s easier than ever to link a bank account online and transfer funds, or to electronically roll over an existing brokerage account to another firm. You can also choose to make recurring deposits into your brokerage account to increase your portfolio regularly.

How Can You Buy Stocks Online Without a Broker?

Usually you need to open an account with a broker to buy and sell stocks online. Some publicly traded companies, however, do offer a direct stock purchase plan (DSPP), where you can buy shares directly. Instead of using a broker, the company’s transfer agent manages the transaction.