direct stock purchase plan

Direct Stock Purchase Plan

A plan in which shares are sold directly to investors, instead of through a broker.

Notes:

A great concept, especially for long term investors, it allows you to make regular purchases and avoid costly broker commissions.

See also: DRIP

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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.