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 ?
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.
Among tools available for Dominion directors, officers and employees to accumulate shares in their company are the open market, internal direct stock purchase programs and others - none of which provides shares at a discount.
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.
Now that it is available, we are confident that the IRA option will be as popular as our direct stock purchase programs have been over the past 7 years.