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
|