Re: Selling Stock

On 2008-05-03 17:26:05 -0700, Douglas Johnson <post@[EMAIL PROTECTED]
> said:

> My wife holds some stocks in DRIP plans.  They have started charging
fees for
> reinvestment.  Last quarter, she got $6.95 in dividends and they charged
her a
> $1.50 for the reinvestment.

Be wary of so-called DRIPs run by banks. The banks will promote a plan 
as a DRIP and take over the paperwork and deal with the company, but 
then pile on fees for this or that which mount up quickly. Some DRIPs 
are managed by brokerages, and their fees are not as onerous as the 
ones charged by banks, but still they take a commission if and when you 
sell. In my view the best way to go is to deal directly with the 
company after you acquire your first share. And in some cases you don't 
even need a first share to buy directly from the company.

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