The initial sample of firms was obtained from the first edition of No-Load Stocks (Carlson, 1995).
No-Load Stocks: How to buy your first share and every share directly from the company - with no broker's fee.
Building a Good Portfolio Is Possible With No-Load Stocks and No Brokers, The Wall Street Journal, (February 18): C1.
According to this argument, firms offer no-load stock purchase plans in order to broaden their shareholder base (MacQuarrie, 1995; Scholes and Wolfson, 1989), especially by attracting smaller investors.
THE FOLLOWING IS selectively excerpted from Charles R Carlson's new book, No-Load Stocks: How to Buy Your First Share and Every Share Directly from the Company--with No Broker's Fee.
(No-load stocks and mutual funds can be bought directly from some companies, allowing you to bypass a broker and avoiding the fees they charge.
I won't say that no-load stocks, as a group, will outperform no-load mutual funds over time.
investing in no-load mutual funds are greater than the costs of investing in individual stocks, especially no-load stocks. The problem is that most investors don't realize it since funds deduct expenses from your holdings, which means you never actually write a check to pay expenses.
How do the costs of investing in no-load stocks compare to the costs of no-load mutual funds?
You never have to guess what securities are held in your portfolio of no-load stocks. And you can reach the "fund manager" any time you want.
However, with no-load stocks, you control your tax destiny.