GiveAShare: A Good Site For A Beginning Stock Investor

beginning stock investingI often get asked the best way to start investing in the stock market. I always think that a mutual fund is the best place to begin because it provides broad diversification at a low price. However, if you are interested in buying an individual stock and don’t have a whole lot of cash to meet the requirements of the big brokers, one share of stock might fit the bill.

GiveAShare History

One of the sites that I like for investors trying to buy stocks for their kids or enroll in a dividend reinvestment plan is GiveaAShare.  On GiveAShare, you can buy a  paper stock certificate in a frame and send it to a loved one or buy a share for yourself. The company has a selection of about 100 different stocks.

Here’s what I like about GiveAShare

I am a fan of paper stock certificates because they are so rare today. I have bought a bunch of stock certificates over the past few years for myself and for nieces and nephews. My entire wall is covered with stock certificates of companies that I have bought over the years. I only buy blue chip companies in certificate form because I know they will be around for the long haul.

One share of stock in paper certificate form is more expensive initially than opening a brokerage account and just buying one share electronically. But I like the fact that you can automatically enroll in a DRIP so that you can buy more shares. For example, most companies require you to buy $500 or $1,000 worth of stock to enroll in a DRIP. If you own one share however this requirement is waived. This way kids and adults can slowly build a stock portfolio and with minimal fees.

By buying one share of stock, you can enroll in the company’s DRIP and buy $25 or $50 worth of stock and keep building your position. Shares bought via a DRIP are recorded electronically and paper statements are mailed to account holders. GiveAShare gives you a list on the company’s website of all of the companies that have dividend reinvestment programs.

I am also a fan of the I’m A Shareholder Kit offered by the company. I read through one a few months ago and it’s a great way to teach kids about stock.This shareholder kit is appropriate for kids and teens. It has a bunch of information on stock investing and some great graphics.

Click here for more information on beginning investing.

Comments

  1. This is pretty cool. I was just talking with my co-worker about how paper shares are a thing of the past, but they are still pretty cool to see. But, it looks like they are still in circulation huh? Cool!

  2. When I was in 8th grade my grandpa gave me one share of McDonalds stock, although I didn’t get a certificate or anything. I have no idea what has happened to that thing; it probably got rolled up into his portfolio.

  3. My grandfather still gives me paper shares each Christmas! Its pretty cool, since you don’t see them too often anymore.

  4. avatar Evan says:

    That’s a cool gift for an adult too. Perfect if you know someone that really likes a company for whatever reason (like a harley guy)

  5. avatar krantcents says:

    This seems like a great way to introduce children to investing! As an adult, I would not mind getting the certificates either.

  6. avatar Pat S. says:

    Awesome. I think I might be getting a frame for a couple of my favorites.

  7. I wouldn’t get one as an investment, but as a decoration they’re pretty nice … it’s quaint and classic to see a paper stock again. (Look at me, saying “again” … I’ve never seen one before!)

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