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direct stock purchase plan

   Also found in: Acronyms 0.02 sec.
direct stock purchase plan
A plan initiated by some firms that permits investors to purchase stock directly from the issuer (thereby avoiding brokerage commissions). Although generally open only to employees and current shareholders, an increasing number of companies allow nonstockholders to make direct purchases.


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A To purchase shares of these companies and many others without using a broker, you must enroll in a direct stock purchase plan or dividend reinvestment plan (DRIP).
For free enrollment forms and prospectus information of participating firms, call the Direct Stock Purchase Plan Clearinghouse at 1-800-774-4117.
Dividend Reinvestment and Direct Stock Purchase Plan
 
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