Basically some comanies will reinvest dividends into more shares of the same company. It is usually administered by a broker or maybe the transfer agent, who probably is a registered broker also. Sometimes there is a small charge sometimes not.
It is not a way to buy and sell shares, though.
If you haven't got anything to spend it on what are you investing for? Surely you need to save for a car, holidays, clothes, education, girlfriend whatever?
Not all companies have such plans. Those that do usually require that you hold your stock directly on the books of the company (not in a brokerage account). The dividends paid by the company are used to purchase additional shares in your name instead of being paid out to you in cash.
That's not necessarily the best way to invest for someone in your situation. Have you read "Investing For Dummies"? It's a great easy-to-read intro to the world of investing.
I'm interested in investing in something (I'm only 16 btw) I have a part time job and earn roughly $200 a week and I have absolutely nothing to spend it on so I aw wanting to invest it in something . I read about direct stock purchase plans and was wondering how the worked , how you get money from them , if they are a good idea and what companies I can do this with . Thank you .
