Direct Stock Purchase Plan - DSPP

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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.

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