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Using a stock broker is the most popular way to purchase shares of a company but this practice is not mandatory. Investors have alternatives when it comes to purchasing stocks and one of them is to purchase these items directly from the company. It is not recommended that novice investors engage in this practice because they will usually have better results operating under the advice of a qualified professional.

Individuals can invest through a the direct stock purchase plan offered by many companies. The plan allows a person to purchase shares from the company directly rather than using a third party. A certain amount may need to be initially deposited but the requirement may be waived if the investor agrees to regular automatic withdrawals from a checking or savings account. Companies such as Exxon-Mobil, Halliburton, Alcoan, and BHP offer direct stock purchase plans.

Just because a company does not offer a direct stock purchase plan, investors may not be left out in the cold. Some, like Chevron and Agnico-Eagle Mines Limited, feature a dividend reinvestment plan. Under this plan, an investor purchases shares of stock that pays a dividend and elects to have the dividend payments reinvested into the company. This is done through the purchase of additional shares of company stock. Some of these plans have a cash investments provision that allows investors to purchase additional whole or fractional shares if they hold at least one share of stock directly and send a check of a certain minimum amount, usually $10 or $25.

Services like One Share permit investors to purchase a single share of stock from many large companies. This is the perfect way to get the one share needed for enrollment in a dividend reinvestment plan. The reinvestment plan allows investors to make purchases with little or no commissions. Investors can also elect to  have a portion of the dividends reinvested while receiving the remainder in cash.

A direct stock purchase plan, dividend reinvestment plan, and services that allow for ownership of a single share of stock are three ways to purchase stocks directly from a company. In some cases, such as that of the new investor, a broker is recommended due to his or her expertise. However, once an investor gets comfortable with the stock market, there is really no reason not to invest directly.