How to Buy & Sell LUV Stock
- 1). Buy and sell LUV stock on the NYSE through a broker or discount dealer. In either case, you will need to open a trading account, which is much like opening a checking account. You must provide personal contact information, identification, employment information and a Social Security number. With a brokerage account, you must have a minimum deposit (typically $1,000). However, discount firms like Sharebuilder.com or BuyandHold.com have fee schedules starting at $3 to $4 per trade without a minimum initial deposit or account balance (see links in Resources). BuyandHold.com also offers subscription accounts with monthly fees starting at $7 (as of 2009) that include a limited number of free trades. Once you have an account opened, call or go online to place your buy or sell order for Southwest Airlines stock.
- 2). Open a direct stock purchase plan account with Southwest Airlines' transfer agent, Wells Fargo Shareholder Services (see link in References). A DSPP is a dedicated account with low transaction fees because you are buying shares from the company, not on the open market. The minimum investment is just $250 or $50 if you are an existing stockholder or if you authorize automatic electronic debits of $50 per month from your checking or savings account. Purchase fees are just $1 per transaction (electronic funds transfer) or $2.50 if you pay by check, plus 5 cents per share.
- 3). Order a copy of the plan brochure and enrollment form by calling Wells Fargo toll free (866) 877-6206 or download these items (see link in References). Read the brochure carefully as it explains the complete terms and conditions of the DSPP and fee schedule.
- 4). Complete the enrollment form and mail it to the address given on the form. You should enclose a check for a one-time $10 enrollment fee. If you are not going to have monthly automatic debits from a bank account, you must also enclose a check for $250 for the initial investment.
- 5). Sell shares from your Southwest Airlines DSPP by placing the transaction order online or by telephone. Keep in mind that, like most direct stock purchase plans, the sales fee is higher. As of 2009, it was $15, plus 10 cents per share for each sale transaction. This fee structure makes a DSPP a good option for long-term investors. However, if your stock trading strategy is aimed at short-term transactions, you will probably prefer a discount provider like Sharebuilder.com or a traditional broker.