Direct Stock Purchase Plan - DSPP

What is a 'Direct Stock Purchase Plan - DSPP'

A direct stock purchase plan (DSPP) is 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.

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RELATED FAQS
  1. 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 ... Read Answer >>
  2. Is a Canadian resident allowed to participate in a direct stock purchase plan from ...

    There is no law that prevents Canadians from participating in direct stock purchase plans offered by U.S. companies. There ... Read Answer >>
  3. Is this stock certificate worthless?

    I bought 50,000 shares of restricted common stock from a company in December 2015 and received a stock certificate. I then ... Read Answer >>
  4. Is there a maximum amount of stock an individual investor or corporation can purchase?

    There are two answers to this question. The short answer is that there is no limit to the number of shares one entity may ... Read Answer >>
  5. What are restricted shares?

    Understand what a restricted share is. Learn why a company would issue restricted shares to employees and why an employee ... Read Answer >>
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    Discover more about a hire purchase plan, and learn some of the specific financial benefits for a company using this plan. Read Answer >>
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