Re: Selling Stock

In article <js6r14p6rv661t59hhkt42n3s1afaqsbci@[EMAIL PROTECTED]
>,
 "HW \"Skip\" Weldon" <skip5700removethis@[EMAIL PROTECTED]
> wrote:

> On Sat, 3 May 2008 21:52:54 -0500, joetaxpayer
> <joetaxpayer@[EMAIL PROTECTED]
> wrote:
> 
> 
> >I agree about using banks, but don't understand why the avoidance of 
> >brokers. My reinvested dividends (through Schwab) do not have any 
> >commission. 
>
The only cost is the commission when buying or selling stocks.   Both 
dividends and capital gains can be reinvested at no additional charge.

> How does Schwab cover their costs?

Since the stock is all book entry and reinvestments and/or dividend 
payments are handled in mass by computer programs, the cost per investor 
is probably next to nothing.  

I doubt the cost per investor in any higher to reinvest than it is to 
post a cash deposit for the dividend/capital gain payment into the 
investors account.

Any broker that would charge an additional fee for reinvestment is a 
broker I would quickly run from.

-- 
-Ernie-

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