Currently, GM does not offer a direct stock purchase program (DSPP) or dividend reinvestment program (DRIP). You can purchase shares of GM through a a securities broker. Some brokers such as ShareBuilder.com have automatic stock purchase plans that allow you to buy partial shares in a similar fashion to a direct stock purchase program, or DRIP. Unlike traditional brokerages, brokers who offer automatic stock purchase plans allow you to buy as many shares as you funds for in your account, which may be less than a typical round lot of 100 shares.
Link your checking or savings account to your online brokerage account. This will allow you to transfer funds automatically into your brokerage account to purchase shares of GM. You can fund your account through payroll deductions, writing a check, or wiring funds.
Determine how frequently you want to purchase GM stock such as weekly, bi-weekly, or monthly.
Place your purchase order. You can place a market order, which allows you to purchase GM shares at the current available price. Use a stop or limit order to set a specific purchase price target.
Computershare, an administrator of 500 direct stock purchase and DRIP programs, does not list GM as offering such programs. Set up news alerts on GM to begin tracking whether the company will offer direct purchases of its shares in the future. Setting up alerts will also keep you updated on earnings reports, investor conference calls, and SEC filings. You can set up free accounts with Yahoo! Finance or Google Finance to receive news alerts. You can use Google Finance to place important company events in your Google calendar. You can also set up alerts on the auto industry in general.
Investing in stocks is risky. Do your homework before you invest in a stock. You may also want to consider consulting with a financial services professional.
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