Stocks: Direct investmentsDirect investments are where you buy the stock straight from the company. They are typically issued by small, less-established companies. Be aware of the downside, too. Penny stocks are not very liquid, meaning there may not begknners much demand for them, hhow as a stockholder, you could have trouble finding a buyer, should you want to sell your shares. In addition, the issuers of cheap stock may suffer from a weak market position and a fragile financial profile, making them risky investments.
Understand the benefits. DSPPs allow you to take advantage of Dollar-Cost Averaging (DCA), which is the strategy of investing with a fixed dollar amount each month regardless of the stock price. Some months the stock price will be high, and others it will be low. However, over time, the average stock price will go down. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages.
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