If you do not have a broker because you bought stock through a DRIP can you still use a stop loss technique?

Question

Does a DRIP make it impossible to have a stop loss order in effect ?

Answer 1

It depends on the program you are in.  If you are in a plan that is managed by a broker, such as the ING DRIP, you would already have your shares in a brokerage account and they would have the share certificates in their vaults.  If you are involved in a DRIP directly through a company, they will either send you the stock certificates and you keep them in your safe-deposit box, or they have a safe-keeping provision and keep your shares in their vault.  Either way, you would have to have them (stock certificates are physical  documents) transferred to your broker so he can sell them.  

Most DRIPs do not have a provision for selling stocks.  You should check with the company if there is a sell-back provision.  Nevertheless, it would not have a sophisticated limit strategy option, just a sell-back at the market (or close to market).  You must transfer them to a brokerage account to place a stop-loss order.

See the following for more info on DRIPs:

http://www.dripinvestor.com/FAQ/drip_faq...

Answer 2

No you can't get things like that. Pretty much all you can do is put a sell order, which will not be right away, but when the transfer agent trades it. So, that can be 2 days at what ever price it is then. Your not using a market system. Your just selling your share back to the company.