direct stock purchase plan


Also found in: Acronyms.

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.

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.
References in periodicals archive ?
Tricon Global Restaurants, which owns KFC, Pizza Hut, and Taco Bell and operates more than 30,000 restaurants, filed an S3 shelf registration with the SEC in September 2000 for a direct stock purchase plan called Yum Direct.
Stockholders who are interested in participating in the plan may also access the relevant information in the Investor Relations: DRIP and Direct Stock Purchase Plan section on the Company's website at www.
American Water also recently announced American Water Stock Direct, a dividend reinvestment and direct stock purchase plan, which enables stockholders to reinvest cash dividends and purchase additional American Water common shares without any brokerage commissions or service charges.
5 million balance of the purchase price was funded by proceeds from the Company's direct stock purchase plan and by the Company's credit facilities.
water and wastewater utility company, announced today that it has adopted American Water Stock Direct, a dividend reinvestment and direct stock purchase plan (the "Plan"), which enables stockholders to reinvest cash dividends and purchase additional American Water common shares without any brokerage commissions or service charges.
On a limited income as a student with two part-time jobs, Hoobler invests through dividend reinvestment or direct stock purchase plans.
The web site offers a list of more than 350 companies offering direct stock purchase plans, their prospectuses and enrollment forms, online registration and others.
You can participate in direct stock purchase plans (DSPPs), or dividend reinvestment plans (DRIPs).
To avoid paying broker fees, you can buy high-quality equities through direct stock purchase plans (DSPs) or dividend reinvestment plans (DRIPs), in which you buy stocks directly from a public company.
Company's remaining equity needs expected to be met through dividend reinvestment and direct stock purchase plans
For years, cost-conscious individual investors who balked at paying brokers' fees to buy stocks have propelled the growth of direct stock purchase plans, called DSPs.