How to Invest Directly in the Shares of a Company?-SaveMoneyGuides.com
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Hey, my name is admin, and I first published 'How to Invest Directly in the Shares of a Company?-SaveMoneyGuides.com' on 27th July, 2008, within the Stock section.
From-SaveMoneyGuides.com-Several great listed companies have a direct investment plan. This could take three forms. One could invest a fixed amount in the shares of a company. Let us say you like Wal Mart and want to buy its shares. You could write a cheque to the Registrars of the company (go to the company website, look for investor relations and see how this can be done). You could authorize the company to take a fixed amount fro your bank account every month and some companies would do this. The company will then buy the shares at the market price and keep it for you. The charges are usually very low or none at all. For a new investor this is a great advantage in terms of convenience and low costs.
The third method is called DRIP. This is an acronym for Dividend reinvestment plans. An investor signs up under this plan. When the company pays dividends, instead of paying this as cash, the company buys shares at the market value. The investment keeps growing. These shares also get dividends and these again get reinvested. This is how great wealth is usually created. The dividends if received in cash might get frittered away. Research has shown that a huge capital appreciation can take place if dividends are reinvested.
This is a very convenient vehicle for new investors to invest in good companies. The secret of great returns is to invest in great companies, join a dividend reinvestment program and keep the money in those shares for a long time.
Great companies such as Johnson and Johnson, Proctor and Gamble, Wal mart and similar companies have arrangements with Registrars whereby they make this process easy for investors. To get a list of great companies who have these kinds of programs, send an email to admin at bestvalueinformation.com
