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.

BREAKING DOWN '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.

  1. Commission

    A service charge assessed by a broker or investment advisor in ...
  2. Automatic Investment Plan - AIP

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  3. Stock

    A type of security that signifies ownership in a corporation ...

    A unit of ownership interest in a corporation or financial asset. ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Dividend Reinvestment Plan - DRIP

    A plan offered by a corporation that allows investors to reinvest ...
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