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 ?
So happy that one investor stood up and asked when Amgen will start a direct stock-purchase plan.
unveiled its direct stock-purchase plan, which is an expanded form of its DRIP.
To join a direct stock-purchase plan, an investor fills out an enrollment form and sends in a check to buy shares.
Hence, direct stock-purchase plans are nicknamed ``Super-DRIPs.
In 1989, only six companies offered direct stock-purchase plans.
com) for allowing investors to enroll online in its direct stock-purchase plan.