GiveAShare: A Good Site For A Beginning Stock Investor
I 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.
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.