What is the cons and pros of Stock reinvestment plan? and Rocks Stock

What is the cons and pros of Stock reinvestment plan?

I am looking into buy stock, the company offers to buy stocks directly from them, through a plan where your dividends are re-invested in more stocks, but if the price fall would that effect my stock count and my dividend re-investment?

I am not welling to buy and sell, i just want to buy stocks and hold them. I am aware of better investment options that are safer to hold than stocks.


Stock best answer:

Answer by Common Sense
PROS:
Easy to set up regular investments like to a Mutual Fund. Partial shares available.
Reinvestment of dividends for free.
Cheaper than most brokers... some plans 100% free.
Good way to invest in a few slect companies & grow those investments over time.

CONS;
PIA for cost basis.
Buying & selling are slow. Less liquidity to get out of bad market.

Stock

Rocks Stock


Image by rubyblossom.
***Please, feel free to use my Textures, Backgrounds, Stock, etc., in your Artwork.
If you do use them, I would love it if you would please post your work in my group, Ruby's Treasures.

...Please DO NOT redistribute as your own...

To see my full Photo Stock Set please visit Here

***If you are interested in purchasing my new and unseen Premade Backgrounds & PNG's , please visit my new Blog here~angiesimaginations***

---

Orignal From: What is the cons and pros of Stock reinvestment plan? and Rocks Stock