Your initial task is to gather as much information as possible. Knowing which companies to invest in and which not to will require greater understanding of the stock market, but for new entrants investing in the food and entertainment industry is usually the way to go. However, leave room for other options if possible. Having made a list of potential investment opportunities, your next task is check whether they offer direct stocks.
Don’t just stop here, it is important to analyse the trends and history of the company, and how their stock’s value increased and decreased across a certain time frame. Compare all options before deciding on a stock for your portfolio.
Direct Stock Purchase plan
A number of companies offer direct stock plans. You can buy shares directly from the company without the need of a stock broker. Go to the company’s website, or contact the investment relation officer for any query. Ask them to mail you the necessary forms that will help you become a part of the company.
Review their structure and your own financial health before submitting the necessary paperwork, which will include your personal details such as name, address, social security number etc, along with your banking information, account number etc. The latter is necessary as most companies will want you to maintain a certain balance in your account. Most also offer a waiver facility, where the money is automatically deducted from your account on a monthly basis.
Dividend Re-Investment Plan
If a company does not offer direct stock purchase, try the Dividend Re-Investment Plan where companies give an option to re-invest in the form of dividends you have earned. In order to be a part, you will at least need to buy one stock.
However, you will need a broker for re-investing purposes but the cost associated with it will be very less. This is because you will be buying a solitary stock. You can always buy more if the investment seems viable and suits your financial plan.