Direct Stock Purchase Plan (DSPP)
An investment service that allows individuals to purchase 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 Says:
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 a cheap way to begin investing. Related Terms:
Automatic Investment Plan
Broker
Commission
Dividend Reinvestment Plan - DRIP
Employee Stock Purchase Plan - ESPP
Shares
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