Direct Stock-Purchase Program

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Direct Stock-Purchase Program

A plan in which a publicly-traded company allows an investor to buy stock directly from the company rather than through a broker-dealer. Some companies offer direct stock purchase plans to raise financing at less expense to the investor (mainly through not charging commissions or fees). Some advisers recommend that first-time investors use direct stock purchase plans because of the reduced cost. It should not be confused with an employee stock option plan because direct stock purchase plans are open to anyone.
References in periodicals archive ?
And one retail source is on the verge of advertising a direct stock purchase program in its stores by providing shoppers with phone numbers and links to buy their stock.
Somewhat surprisingly, Web sites were mentioned most often, followed by investor relation departments, DRIPs, public relations departments, direct stock purchase programs, NAIC events and publications (the NAIC, or National Association of Investors Corporation, provides investment education for individuals and investment clubs), and toll-free investor access.
Nextel has $2 billion available on its $5 billion shelf registration including $1 billion designated for the direct stock purchase program.
We also recently introduced a dividend reinvestment and direct stock purchase program for shareholders.
NYSE:UNS) Friday announced the commencement of its new Investment Plus Plan, a direct stock purchase program, to provide current shareholders and potential investors a method to purchase UniSource Energy common stock without payment of brokerage commissions or service charges.
The marriage of the organizations creates the premier provider of Customer Stock Ownership Programs (CSOPs), offering corporations a full range of equity-based loyalty programs, as well as web-enabled direct stock purchase programs that transform corporate websites into equity distribution engines.
SCC, founded in 1969, is recognized as the technological and service-oriented leader in a wide range of outsourced services, including mutual fund proxy solicitation, small shareholder buyback programs, pre-escheat programs and other corporate and capital services including direct stock purchase programs.
Thanks to the explosive growth of direct stock purchase programs (DSPs) -- from only 35 in 1994 to more than 350 today -- it has never been easier to buy individual stocks or build a complete portfolio without ever calling a broker.