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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Direct stock purchase plans typically have more features than dividend reinvestment plans.
You can participate in direct stock purchase plans (DSPPs), or dividend reinvestment plans (DRIPs).
ShareBuilder is a new Web site developed by the folks at Netstock.com, which offers free research on the 1,600 companies that offer DRIPs and direct stock purchase plans.
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.
Direct stock purchase plans make a splash on the Internet