Learn everything you need to know about DSPs and DRIPs here. If the idea of being able to buy stocks directly from companies sounds exciting to you, you want to know everything you can about this type of investment opportunity.
A direct stock plan (DSP) allows investors to buy stocks directly from companies. Companies can offer this direct investment stock to anyone interested in investing in the company. The investor buying stock direct transfers funds from a checking or saving account using an electronic funds transfer (EFT), which is like writing a digital check.
Many companies allow you to buy or sell shares directly through a direct stock plan (DSP). You can also have the cash dividends you receive from the company automatically reinvested into more shares through a dividend reinvestment plan (DRIP).
Some investors own stocks by direct registration. That's when the stocks are held by the company that issued the stock, or by a firm it has hired to handle investor issues, called a transfer agent. You can read about the advantages and disadvantages of the three ways of holding stocks, including street name and direct registration, here.
Materials are mailed to shareholders of record by the end of January. You should expect to receive materials in February. Beneficial shareholders will receive proxy materials directly from their brokerage firm.
Registered ownership may take the form either of physical certificates or of uncertificated ownership. Both types of registered stockholders will receive dividends, communications and financial documents directly from AT&T Inc.
Registered shares appear on the share register of outstanding shares of Caterpillar Inc. kept by our stock transfer agent, Computershare. The share register is used to determine shareholders of record as of a specific date, such as in connection with payment of dividends and eligibility to vote at a meeting of shareholders. Registered shares may be held in certificate form or in book-entry form through the Direct Registration System. Our registered shareholder group includes individuals, corporations, trusts, banks, and brokers/nominees that hold shares for the benefit of others. The company has access to the registered share records through our transfer agent. Dividends on these shares are paid to the holder of record directly by Computershare.
Safra A. Catz has been a Chief Executive Officer of Oracle Corporation since 2014. She served as President of Oracle from 2004 to 2014 and as the company's Chief Financial Officer from 2011 to 2014 and from 2005 to 2008. Prior to being named President of Oracle, she held various other positions with Oracle from 1999. She has been a member of the Board of Directors of Oracle since 2001, and was a director of HSBC Holdings from 2008 through 2015. She was elected a Director of the Company in December 2017, effective February 1, 2018.
Francis A. deSouza has been President and Chief Executive Officer of Illumina, Inc., a biotechnology company, since 2016 and served as President of Illumina from 2013 to 2016. Prior to joining Illumina, Mr. deSouza was President, Products and Services, of Symantec Corporation from 2011 to 2013, and Mr. deSouza served as Symantec's Senior Vice President, Enterprise Security Group, from 2009 to 2011. Prior to that time he founded or worked in a variety of other technology businesses. He has served as a Director of Illumina since 2014 and was a director of Citrix Systems, Inc. from 2014 to 2016. He was elected a Director of the Company in December 2017, effective February 1, 2018.
1. Dividends. When companies are profitable, they can choose to distribute some of those earnings to shareholders by paying a dividend. You can either take the dividends in cash or reinvest them to purchase more shares in the company. Investors seeking predictable income may turn to stocks that pay dividends. Stocks that pay a higher-than-average dividend are called \"income stocks.\"
Value stocks, in contrast, are investments selling at what seem to be low prices given their history and market share. If you buy a value stock, it's because you believe that it's worth more than its current price. Of course, it's also possible that investors are avoiding a company and its stock for good reasons and that the price is a fairer reflection of its value than you think.
When you buy stocks on margin, you borrow part of the cost of the investment from your brokerage firm in the hopes of increasing your potential returns, which can magnify both your gains and your losses. For this reason, it's important to understand how margin accounts work and the risks associated with buying stocks and other securities on margin. Learn more about margin accounts.
Short selling is a way to profit from a price drop in a company's stock and, like buying on margin, tends to be a short-term trading strategy. It involves more risk than just buying a stock. To sell a stock short, you borrow shares from your brokerage firm and sell them at their current market price. If that price falls, as you expect it to, you buy an equal number of shares at a new, lower price to return to the firm. If the price has dropped enough to offset transaction fees and the interest you paid on the borrowed shares, you may pocket a profit.
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Dividend Reinvest Plans (DRIP) and Direct Stock Purchase Plans (DSPP) are plans provided on behalf of corporations to simplify investment activity. DSPPs offer investors the opportunity to buy shares directly from the corporation, via the transfer agent, often without involving a broker. Some plans do require that investors own a minimum number of shares prior to participating in a plan. The costs associated with DSPPs may be higher or lower than the costs of using a broker.
A registered shareholder is the owner of record on the books of the corporation, generally kept by the transfer agent. The registered shareholder may be an individual, a trust, a broker, etc. Registered shareholders receive dividends, proxies and other communications directly from the corporation via the transfer agent or the corporation directly.
Securities held in a brokerage account, and registered in the name of the broker or other institution, are referred to as being in \"street name\" or \"beneficial shares.\" If you keep your stock with your broker in a broker account, you are a \"street name\" holder and are not directly registered on the company's records as maintained by the transfer agent. Company mailings, including dividends, will reach you through your broker. If you wish to move your shares from registered to beneficial ownership, Broadridge or your broker will help you do so.
Escheatment is the term used to describe the end result of unclaimed property compliance. It is the annual process of complying with state law whereby the state gains custody of assets meeting certain criteria for presumptive abandonment. The state holds the assets, or their cash equivalent, until such time as they are claimed by the owner or legal claimant. To claim proceeds from abandoned property, the investor must directly contact the state. Links to individual state unclaimed property programs may be found by visiting www.unclaimed.org. Your account will be escheated to your last known resident state or to the company's state of incorporation if you are a foreign owner who resides outside the United States.
Direct Stock Purchase Plans (DSSPs) allow investors to buy stock directly from companies instead of buying stock through a broker. Investing wth DSPPs is a low-cost way to invest directly with a publicly traded company. These plans are generally set up directly with the company or are administered through a third party transfer agent. 59ce067264