A broker is an intermediary between two parties who want to buy and sell with each other. The broker therefore facilitates this transaction and in the process is paid a fee for the facilitation services and other services provided on behalf of the two parties.

In the stock market, brokers facilitate daily transactions between investors and companies and earn a commission from both parties. However, some parties seek to bypass intermediaries due to the fees paid that reduce the profit margins of transactions by increasing the cost.

Here are five ways that could help you sell stocks without hiring a broker.

1. Direct transfer to a third party

After finding and agreeing with an interested party, you can change the name of the shareholder to a different name from the new owner. Transferring shares to a third party is basically changing the ownership and right to manage the shares. The entire share ownership change process can be facilitated by the company’s investor relations office, which most likely has hired a transfer agent to handle the entire process on behalf of the company.

2. direct purchase plans

Many blue-chip companies have investor relations provisions whereby investors can directly buy or sell the shares of the particular company. Some companies charge a competitive fee to use their internal services, while others offer these services for free. The direct sale of shares offers the owner of the shares an unadulterated price per share that is higher than the price per share proposed by the brokers due to the reduced amount and types of fees throughout the process.

3. become a runner

Another way to avoid traffickers is to become an agent. By purchasing brokerage accounts, one can sell shares on their own behalf and on behalf of other shareholders directly to the company. However, this process can be expensive for individual investors with small volumes because opening a brokerage account requires an initial deposit whose value is determined by market regulators.

4. Dividend Reinvestment Plans

Company Operated Dividend Reinvestment Plans (DRIPs) are arrangements made by shareholders to reinvest dividends earned from investment without going through a brokerage center. The return of this profit to the company allows the shareholder to increase his participation in the company at a certain price per share without being charged commissions. However, the shareholder can only sell these shares to the company or other shareholders with DRIPs when they dispose of these shares and thus the middleman is bypassed.

5. Sell ​​directly to the company.

Publicly traded companies have investor relations departments that can allow share certificate holders to come in and mail the share certificate at the prevailing market price per share and the company deposits the cash equivalent in the mode of payment seller’s favorite Accordingly, this process can be facilitated by the company’s transfer agent who is independently contracted as an outsourced service provider and not as an intermediary.