Another option to acquire a single share of stock needed to enroll in a DRIP is to use the services of a group called "First Share." First Share is a network of investors who have agreed to sell single shares of stock of companies they already own to othe r members. Each stock referral (of a buyer to a seller of a single share) that First Share provides is $4.00; also, the buyer pays a fee of about $7.50 to the seller, in addition to the share price. Members are obligated to sell one share of each stock th ey purchase through First Share to another member at some point. In effect, members recoup their $7.50 purchase commission for each stock they purchase, so the net cost of purchasing the share is only $4.00 (the referral fee).
Participating in First Share can be quite educational, because the participating individuals themselves must effect the transfer of shares between buyer and seller. Members learn quickly about stock powers, signature guaranties and transfer agents, but Fi rst Share provides all the information and sample forms to make it as easy and understandable as possible.
Over 350 companies are currently represented by members of First Share, and membership is $30 for 2 years.
305 Mitchell Mountain Road
Westcliffe, CO 81252
Telephone: (719) 783-2929
Fax: (719) 783-2909