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Investing General discussions on investing and investments: shares, bonds, commodities, forex, and funds.

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Old 10-08-2006, 05:54 AM
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Default Low Cost Investing

Perhaps this could give a good idea on investing at a low cost price.


Subject: Trading - Direct Investing and DRIPs

DRIP stands for Dividend (sometimes Direct) Re-Investment Plan. The basic idea is that an investor can purchase shares of a company directly from that company without paying any commission. This is most commonly done in a traditional DRIP by having all dividends paid on shares immediately used to purchase more of the same shares (i.e., the dividends are reinvested). Most plans also allow the investor to purchase additional shares directly from the company every quarter. Thus the two names for DRIP: Dividend/Direct Re-Investment Plan.
DRIPs offer an easy, low-cost way for buying common stocks and closed-end mutual funds. DRIPs are also a great way to invest a small amount each month (dollar-cost averaging). Since most of us try to set aside a little each month, this can work extraordinarily well. Yet another good use of a DRIP is to give a small amount of stock as a gift.


Check more of it at:
Invest-FAQ
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Old 11-27-2006, 05:30 AM
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Default Re: Low Cost Investing

Too bad it has such a drippy name. Who came up with that one? I'm a big believer in paying as little as possible to invest your money.
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Old 02-19-2007, 04:35 AM
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Default Re: Low Cost Investing

I have never heard of DRIPS feline..that’s very informative. I will have to look into it...since i truly think that investing a little at a time is better than nothing!
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Old 03-22-2007, 05:08 AM
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Default Re: Low Cost Investing

Sounds good, but I'd rather just stick with CDS, you can expect to get a certain amount back and you won't loose anything.
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