Direct Stock Purchase Plan - DSPP
Definition of 'Direct Stock Purchase Plan - DSPP'An investment service that allows individuals to purchase a stock directly from a company or through a transfer agent. Not all companies offer DSPPs and the plans often have restrictions on when an individual can purchase shares. |
|
Investopedia explains 'Direct Stock Purchase Plan - DSPP'The greatest benefit of using a DSPP for investors is the ability to avoid commissions by not going through brokers. DSPPs often have minimum deposit requirements that range from $100 to $500. They are perfect for investors who have a long-term trading strategy and are looking for an inexpensive way to begin investing. |
Related Definitions
Articles Of Interest
-
Start Investing With Only $1,000
Find out what fees and restrictions need to be considered before investing $1,000. -
Is a Canadian resident allowed to participate in a direct stock purchase plan from a U.S. company such as Pfizer?
There is no law that prevents Canadians from participating in direct stock purchase plans offered by U.S. companies. There are also no laws preventing Canadians from participating in dividend ... -
How can I purchase stocks directly from a company?
There are a few circumstances in which a person can buy stock directly from a company. The following is meant to cover some of these instances, which include direct stock purchase plans, dividend ... -
Stock Basics Tutorial
If you're new to the stock market and want the basics, this is the tutorial for you! -
Broker Commissions Are Here To Stay
With two developed nations adopting a firm anti-commission stance, questions have arisen over whether or not the United States should follow suit. Find out why such a development is unlikely. -
10 Great Summer Jobs For Teens
There are a lot of summer jobs out there, find out what's available, how much it costs and what skills you need. -
Playoff Perks For Pro Athletes
If personal pride, a stellar resume and increased job security aren't enough incentive for some pro athletes, each league has reserved a bit of lunch money to up the ante and help tide athletes ... -
5 ETFs Flaws You Shouldn't Overlook
Despite their popularity, exchange traded funds have some drawbacks that investors should know about. -
5 Common Misconceptions About ETFs
The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here. -
Top-Paying Contract Positions
A number of contract positions pay more than their salaried counterparts.
Free Annual Reports