direct purchase

Direct Investment

The act or practice of buying stock in a publicly-traded company without using a broker as an intermediary. Perhaps the most common means of direct investment is dividend reinvestment, which is the act of using one's dividends to buy more shares in the same company. Some companies also offer plans called direct purchase plans, which allow investors to bypass their broker. However, direct purchase plans are rather illiquid (it is difficult to sell one's shares without a broker), and are therefore bought for long-term investing.

direct purchase

To buy shares of a mutual fund directly from the fund rather than from an intermediary such as a broker or financial planner. Mutual funds that sell directly to investors do not have sales personnel and generally charge no sales fee or a relatively small sales fee.
References in periodicals archive ?
The second part of the Direct Purchase Program stems from the value engineering meetings.
Initially, the Virginia Medicaid Direct Purchase program will be limited to the measles, mumps, and rubella vaccine manufactured by Merck & Company.
Assessments, which are well below direct purchase costs of imported supplies for water producers, are only expected to experience minimal annual increases through fiscal 2012 given the district's limited capital needs.
May 13, 2013 /PRNewswire/ -- Boeing (NYSE: BA) delivered a 767-300ER (extended range) to MIAT Mongolian Airlines today, the first-ever direct purchase delivery to the airline.
The Conference Report indicates an interest in a trade or business does not include merely the direct purchase of the assets, but also includes the indirect acquisition of the stock of a corporation engaged in a trade or business.
A fully functional version of SQL Prompt is available as a free 14-day trial and for direct purchase from www.
Investors can buy stock directly from companies through both DRIPs and direct purchase plans.
The direct purchase of the 20 aircraft produced in Long Beach will be between McDonnell Douglas and the China Aviation Supplies Corp.
The plan should also address the tax and nontax effects of whether the successor acquires the stock interest via stock redemption or a direct purchase.
Stock brokers have little reason to embrace a system that doesn't pay commissions, but at least one major industry organization says direct purchase plans have their place.
Other reasons the corporate world has not offered direct purchase is the reluctance to compete directly with the retail broker and because of a fear that investment bankers would give negative buying recommendations.
Amdek also announced several new incentive programs for dealers and an end-user direct purchase program targeted at the Fortune 1000 marketplace.