They typically allow investors who own at least one share of a company's stock to buy shares directly from the company. Dividends are reinvested, usually at no cost. They let you buy all your shares from the company, eliminating the need to buy your first share from a broker or other source.
Investors can order up to five free prospectuses for no-load stocks.
DirectInvestor World Wide Web site . Offers a list of companies with direct-investment plans. NAIC's Low Cost Investment Plan lets investment clubs and individuals enroll in dividend investment plans for a small charge. Newsletter for direct investors. Web site features list of companies offering no-load stocks.