Buying Penny Stocks Directly?

Question

I am new to buying stocks, and am not looking to make much profit, just experience what the stock market is like, as I am only 18. A particular penny stock has caught my eye. I have checked out all the online brokers, and have decided that I would like to try to buy stock directly from the company. If the company allows this how does the "deal go down" as far as payment, and do they send me some sort of stock certificate. I realize that different companies are probably different, therefor i mean in general.

Yes i realize most people hate penny stocks, but as i said i'm looking to gain experience.

Answer 1

Direct initial investment plans cost money to operate. Money is something the penny stocks usually do not have, most are usually losing millions every year. So you will not be able to do it. Check with the company's web site and call the investor relations number. For good large cap companies that run initial investment/dividend reinvestment plans (known as DRIPS, google has lots of info on it), they send you an application form, you fill it out & send it back with your check. When the check clears, they invest it -- some every week or 2, others once a quarter when their dividend comes out and is reinvested. Then they send you a receipt. No stock certificates are send unless you pay to have one printed up and send (brokers charge around $50).

Answer 2

I study the responses of the various individuals and boy are they merciless. Penny shares are as sturdy of an investment as any inventory purchase. I truthfully have offered and made money on quite some penny shares. right here is what I did. I opened an on line buying and advertising account. you need to use specific commerce, E commerce, scotttrade, or whoever you like. attempt choosing one with the backside commisions. maximum are around $7 in step with commerce. you will could transfere money on your new account to start buying and advertising. whilst they post the verify you deliver them on your account you're then in a position to purchase any inventory you p.c.. even penny shares. i'd think of that $7 in step with commerce is alot greater much less high priced than what your customary inventory broking service costs you. Heck you may ascertain you do no longer p.c. a inventory broking service and do all your buying and advertising on line.