"floridian1" <orbitztravel[at]aol.com> wrote in message news:<94a5abaeb40e6df8002d822b6045712c[at]localhost.talkaboutinvestments.com> ...
- quote -

There is a toggle on the sharebuilder account to reinvest dividends
for free, toggle it on and you will be all set. No certificates
issued.

In article
<94a5abaeb40e6df8002d822b6045712c[at]localhost.talkaboutinvestments.com> ,
floridian1 <orbitztravel[at]aol.com> wrote:

- quote -

Sharebuilder and DRIPs are two different things.

Sharebuilder is a company that allows you to buy fractional shares
of stock. Since most companies will not sell fractions this way,
Sharebuilder actually owns the stock for you in its name. If the
stock that is in your account has a dividend, Sharebuilder can either
give you that in cash, or buy the equivalent fraction of a share
that the dividend can purchase. This all happens within Sharebuilder,
the company you invest in never knows about or what is happening.

A DRIP is a plan that you have directly with the company that you
are investing in. Not all companies have DRIP plans. In order to
start a DRIP plan, you need to purchase 1 or more shares of stock
in the company, and have that stock in your name (not a street name
or a sharebuilder account). There are even a few companies that will
allow you to buy this single share of stock from them. Otherwise,
you have to go to a broker and request the certificate, or use a
firm like JustOneShare. Once you get your share of stock and register
in the DRIP plan, everything that happens is done by the company
that you invest in. There is no administrator or broker to deal
with. If you get a dividend from the company, they issue you more
stock to pay for the dividend.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

On 17 Aug 2004 09:05:15 GMT, "floridian1" <orbitztravel[at]aol.comwrote:

- quote -

"Account Profile" button under the "Account Options" in the left bar.
"Dividend Reinvestment Options" will be one of the things that you can
change.
If you select automatic dividend reinvestment, Sharebuilder will do
it for free. You will not get a notice each time, but it will show in
the Transaction History of your account with the designation DVR.

Hello,

I am new to investing and have a question about DRIP'S. I recently opened
up an account with sharebuilder. Say I begin buying shares of company x
monthly through that site and want dividends to to be reinvested. Do I set
this up with the company X directly or would sharebuilder do it? Do I need
to get a stock certificate and mail it to the company to get it going? Do
I need to send new certificates as I buy more each month? How does company
X put the dividends back into my sharebuilder account?

If anyone knows how this "works" and could spell it out in layman's terms
that would be appreciated!

Thanks!
Scott