For the "First Time Investor"
Sep 27 '00
I never thought about investing in the stock market in till I had to take a class in college in "Financing and Investing". The instructor, gave us a project to do, "To become Andrew Carnageie" was the project's name. We had to buy 1(one) share of stock and DRP it. The rules where 1. The stock had to be in your name , not a street name. 2. You had to bring in the certificate and show him and the class.3.You had invest $10.00 or more in the account each month.and 4.Bring in your account statement , each month to class to see how many shares you got that month.
He put a limit on the price we were to pay for our share, of no more then $25.00 (with broker fees)
Most Brokers don't like to sell in odd lots(less then 100 shares), but he had one that worked with the class and we got our shares through her. That was two years ago and I have 110 shares of my company, I have since bought other stocks on line using Buy And Hold .Com but, I am NOT a Millionaire yet, and don't think I will be ,I have learned to save money, how the market works,or how it suppose to.I get to vote on how my companies are run , elect board members, go to yearly meetings and eat some finger food and have cocktail's with some "BIG WIGS" and I kind of enjoy it.
For some one that wants to start investing, DRP's is a shall we say "Cheap"way of getting into the market.Your commission cost are low (some plans charge as low as $.05 to .10 to buy or sell your shares or some have no fee to buy and charge $1.00 to $5.00 to sell ). Some charge nothing to issue certificate's(as long as it is 100 shares or more if less then 100 shares then they may have a small fee.)Buy and Hold .Com has a $2.99 per transaction fee to buy or sell and hold the shares in their or the Street Name(to get a certificate from them cost $30.00 so you must keep in mind your transaction cost $2.99 x number of shares plus $30.00 to get your certificate's)
The one thing I have fond is that most books I have read on DRP are over 10 years old , and most magazine's such as "The Money Paper" and "First Share" do not have a lot of info for someone who is just starting out in investing in DRP's but , their web sites have a Q&A area that answer most questions one would have.
You may or may get rich investing through DRP's but, you may do what I have done ............ LEARN SOMETHING!!!!!!
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Epinions.com ID:
hsegle
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Member: Hank Segle
Location: Wintersville , Ohio
Reviews written: 1
Trusted by: 0 members
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