The good news is that it’s possible to buy Walmart stock directly from the company and avoid these extra charges—you just need to be aware of the details of the company’s stock purchase program, which will allow you to buy shares at fair prices.
Who can participate in Walmart Stock Purchase Program?
Any person or entity can purchase stock in Walmart!
This includes investors and employees, as well as directors and members of board committees, according to Wal-Mart Stores Inc.’s website. If a shareholder is interested in buying stock for someone else (as a gift, for example), that person must agree to participate in the program before any shares are purchased.Authorized participants can use their company’s Plan Agent Account number to participate in all share purchase programs.
Shareholders who are not interested in receiving dividends from their stock can opt-out by filing an additional request form with their broker or paying additional fees to participate in dividend reinvestment programs. Additional information about these programs can be found on Wal-Mart’s investor relations page.
How to participate?
You can purchase individual shares of Walmart’s stock directly from a company representative or you can get your broker to purchase shares on your behalf. If you want to do it yourself, make sure you read up on how to buy stocks before taking action—and keep in mind that your investment amount must be $25,000 or more. Once you have purchased shares, they’ll be held in an account at Pershing LLC. Each quarter, you will receive dividends based on how much money the company made (approximately 1% of total income). Those who participate in Walmart’s stock-purchase program can also benefit from free financial guidance if their assets exceed $500,000. For customers with less than $500,000 invested with Wal-Mart Stores Inc., quarterly meetings with a registered financial adviser are available for free. In addition, certain participants may be eligible for discounted legal and accounting services.
Benefits of a WMP Plan
Signing up for a WMP plan has a number of advantages. You can purchase stocks at a discounted price, which will help you build your investment portfolio faster than if you had to do it on your own or through any other means. In addition, your share of these stocks will remain in their original form, meaning that if you want to transfer them to another account or sell them later on, there will be no loss in value. Finally, while stock prices may rise and fall over time due to market fluctuations (more on that later), they are very likely to go up in value over time. If you’re considering investing in stocks but would like to do so as safely as possible, a WMP is for you! Your purchased shares will not only be worth more overall, but because they won’t have been sold elsewhere before being repurchased by Walmart, they will retain their value as well. For example, suppose you pay $10 per share and five years later those same shares are worth $25—your profit from reselling them back to WMP when you’re ready is $15 per share. It makes sense: If you buy low, then resell high on a consistent basis, your net profit will quickly add up.
Pros and Cons of a WMP Plan
Every investment comes with both pros and cons. When it comes to investing in a WMP plan, there are plenty of benefits for employees, but some risks as well. For example, you may be able to invest your WMP savings in company stock at little or no cost. This means that if company profits go up so do your returns. However, that benefit can also have drawbacks; because you’re invested in company stock any losses are also your responsibility (and vice versa). Other perks include automatic payroll deductions and diversification because you aren’t limited to only one investment option like many other retirement plans typically offer. You also won’t pay taxes on investment gains until you actually withdraw money from your account which is ideal. Plus, there’s very little paperwork or red tape involved when compared to 401(k)s or Individual Retirement Accounts (IRAs) which is beneficial to employers who don’t want their resources bogged down by administrative tasks. There is generally a required minimum number of employee participants before an employer can sponsor a WMP plan which could make such investments less appealing for small businesses. And even though employee contributions are typically made through payroll deductions, investors still need to manage their own funds through portfolio tracking and making sure tax liabilities stay in check throughout various years after withdrawal. Finally, as always – nothing is risk-free!
