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The Pocket Idiot's Guide™ To Direct Stock Investing by Lita Epstein, Douglas Gerlach

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Purchasing Shares

When you choose to invest through a DSP plan, the actual purchases are not decided by you. You make your cash investment through the transfer agent, then the transfer agent groups everyone’s cash investments and makes periodic purchases of stock. You will not know the price you pay for that stock until after the transfer agent makes the purchase and sends you a transaction verification.
Your per-share purchase price will include the per-share transaction fee and an average weighted price for all shares purchased on that date, plus any transaction fees the agent had to pay. Transfer agents may buy shares daily or once a week, depending on their trading policies.
Your DSP account will be credited for all full and fractional ...

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