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Three Ways to Purchase Stocks:
Use a brokerage -- the most common way to buy stocks. You can use either an expensive full-service broker, or a less expensive discount broker. You must determine whether the services offered by the full-service broker are worth your money. When you use a brokerage, you can have a cash account or a margin account, meaning you can borrow money to buy stocks.
DRPs and DIPs ("drips") -- these are plans sponsored by individual companies that allow shareholders to purchase stock directly from a company with only minimal costs or commissions. It is great for those who have small amounts of money but are willing to invest at regular intervals.
Electronic discount brokers -- BuyAndHold.com, etrade.com, ameritrade.com and a growing list of others are discount brokers that allow you to do your trading on line with minimal transaction fees. Some allow day trading, others are not intended for this. Be sure to read the terms of trading before attempting your strategy.
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