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Re: bar1080 post# 16689

Wednesday, 06/15/2011 9:39:47 AM

Wednesday, June 15, 2011 9:39:47 AM

Post# of 16741
There is a difference

Between "Investing in a company" and "Buying shares on the stock market.

First, investing in a company would be buying the shares directly from the company and the company then uses those proceeds to further the business.

Buying penny shares on the stock market, you could be buying from the company but probably are bailing out another bagholder. Either way, it is best to stay out of pennies.

Consider SO or another utility stock if you wish to "Invest".

SO pays 4%+ dividend and has a dividend reinvestment plan that allows you to buy shares direct from the company at a 5% discount from the market price. Those shares never enter the market. They are never Pledged. repledged, hypothecated, or generally used against the investor in any way.


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