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 ?
CYS Investments Inc (NYSE:CYS) revealed on Monday that it decided to terminate its Dividend Reinvestment and Direct Stock Purchase Plan, from 20 July 2018.
A This is a common quandary investors face when they own individual stocks through a dividend reinvestment plan (DRIP) or direct stock purchase plan (DSP).
Starwood Property Trust Inc (NYSE:STWD) said on Thursday that it adopted a Dividend Reinvestment and Direct Stock Purchase Plan (the plan).
Also, American Water's American Water Stock Direct dividend reinvestment and direct stock purchase plan allows the reinvestment of cash dividends and purchase of more of its common shares without any brokerage commissions or service charges.
Additionally, the company mentioned that it offers a dividend reinvestment and direct stock purchase plan, called American Water Stock Direct, permitting stockholders to reinvest cash dividends and buy more American Water common shares without any brokerage commissions or service charges.
Additionally, the company revealed the offer of a dividend reinvestment and direct stock purchase plan called American Water Stock Direct permitting stockholders to reinvest cash dividends and buy more American Water common shares without brokerage commissions or service charges.
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.