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

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What’s the Source of the Shares?

You may be wondering where the shares of stock you purchase originate. In some cases the stock will be from shares that were authorized by the board of directors but not yet issued. In other cases the administrator for the company’s DRIP will buy shares on the open market through an affiliated broker.
If shares are bought on the open market, the purchases of all new DRIP investors are pooled and may be made over a number of days to minimize any impact on the stock’s selling price.
You won’t know the price you actually paid for the stock until after you get the transaction information from the DRIP administrator. This is very different from buying stock through an online broker, where you actually know the price ...

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