How to Purchase Stock

Posted by sanjay.j | 12:28 PM | | 0 comments »

Stocks are usually purchased by two ways, one is by using a brokerage and another way followed is using DRIPs and DIPs, Let us have a brief outlook on these two types.

Using a Brokerage

The common method of purchasing stock is done using a brokerage. In this type we can categorize brokerages into two types namely full-service brokerages and discount brokerages. Full-service brokerages provide expert advice. But one thing you have to do is to pay the amount for their service . If you pay for them they will manage all that is necessary for you. You can avail them as they work around the clock. Regarding discount brokerages you could avail them at low rate. They pay only little attention to your trade.

DRIPs and DIPs

The individual companies issues two types of plans DRIPS and DIPS at a minimal rate. The extension for DRIPs is Dividend Investment Plans. It helps the share holder a lot as they can invest a small amount of money. Here the investors has to pay it at regular interval. The extension for DIPs is Direct Investment Plans. These two plans are really an advantageous one to the share holder as they could buy stock from the company directly.

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