small investment:Is trying to come up with hundreds or even
thousands of dollars keeping you from opening an investment account? It
shouldn’t. In the past it was almost a requirement to have quite a bit
of money available in order to make your initial investment in a mutual
fund or open a brokerage account. Today, things are quite different. You
can now start investing with very little money up front. Here’s how.
Direct Stock Purchase Plans
If investing in individual companies is your goal, you might want to
consider Direct Purchase Plans, or DPPs for short.
Like their name suggests, you purchase these stocks directly from the
company. There’s no brokerage account, no middleman, and you work
directly with the company that issues the stock. One drawback is that
not every company offers a DPP so you may be somewhat limited in your
selection.The real benefit of a DPP is that you aren’t paying a hefty
commission to a broker and you’re given the ability to purchase
fractions of shares. For example, say a company you want to invest in is
trading at $100 per share but you only have $50 to invest at the
moment. Well, through a DPP you can usually buy just half of a share and
then you could continue to use small amounts of money to purchase more
shares over time. 41383
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