An investor signs an application form, whose acceptance by the company puts the account into operation. At each payment, the company sends him a receipt showing he has bought so many whole shares, plus whatever fraction of a share uses up all of his payment at the current price.


In some mutual-fund accounts, these rules cover all of the main points. These accounts leave an investor completely free to send in any dollar amount, whenever he chooses. Usually an investor can build up to the initial minimum by buying shares in the regular old way until he has enough to join a plan. No extra charges are involved in the plans mentioned thus far.

(Incidentally, on an ordinary life-insurance policy sold direct by an insurance company, the penalty for early quitting is more severe than in the mutual-fund penalty plans.)

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