direct purchase program
Definition
A SEC-regulated program which enables a company to sell shares of stock directly to investors, rather than through a broker, enabling the investors to avoid paying a commission. Direct purchase programs are a good way to invest small amounts since you don't even have to be a current shareholder in order to purchase the shares. The company will not charge you a commission, but they may charge you a small fee in order to set up a stock purchase account. also called Direct Stock Purchase Plan (DSP).
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Related Terms
no-load stock
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