Wednesday, July 20, 2011

How to buy stocks w/o a broker?

Lord has the right answer. Unless you work for a corporation with a direct purchase plan, what you want is a huge mistake in your thinking. Trade commissions are peanuts and like the guy said, if that's a big deal to you then you are buying the wrong stock and/or trading far more often than you should. Commissions are tax deductions anyway. And only a broker will give you liquidity to get in and out as fast as you can place the order. Getting out of direct purchase and reinvestment plans can take weeks. First they need to convert the share, which is non-certificate form, to certificate form in your name. Then after you receive the certificate, you need to have it converted to street name by a broker so he can sell it. But you don't have broker. Any bells ringing yet?

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