About 430 companies now allow you to buy or sell shares directly from them without the help of a broker.

The beauty of it? No broker. No commission.

That doesn't mean your purchase is totally free.

You'll have to pay a fee that varies from company to company, but it's almost always less than the commission you'd pay a broker.

You'll also likely have to purchase a minimum dollar amount of stock, ranging from $25 to $2,500, with $250 a typical minimum, according to the American Association of Individual Investors. And you may be required to keep a minimum amount in your account. These minimums, again, are usually lower than minimums brokers require.

Direct stock purchase plans aren't for investors who want to buy and sell based on the latest news. They require shares to be traded on a regular, preset schedule at an average market price. You can find when the company will buy and sell shares and how it determines the price by reading its disclosure documents.

Also, you can arrange to have any cash dividends you receive from the stock automatically reinvested into more shares through a dividend reinvestment plan.

Direct purchase plans are best for long-term, buy-and-hold investors, says the American Association of Individual Investors. Since these plans eliminate the middleman, they're a good bet if you're buying a small number of shares. They can be an inexpensive way to get in the market.

Be sure to read the plan description (available through the company's investor relations department and sometimes found on the company's Web site). Make special note of:

• Eligibility requirements.
• Fees or charges with each transaction.
• Number of shares needed to open an account.
• Minimum or maximum you can buy or sell.
• Dates when you can invest.
• How to withdraw, transfer or sell your shares.
• How to withdraw entirely from the plan.