Definitions (2)

1. Direct Stock Purchase Plan. 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. DSPs 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. Direct Stock Purchase Plans are not related to Directed Share Programs (which have the same acronym, DSP).
2. Directed Share Program. A plan designed to allow company employees, their relatives, and other parties with a relationship to the company to purchase stock as part of a public offering. The directed share program sets aside a quantity of stock for this purpose which qualified parties may purchase at the public offering price.

Use DSP in a sentence

You should always make sure that you have a good DSP in place before you ever fully decide on what to do.

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My boss and I both buy shares directly from the company out of our paychecks and are participants in the company's DSP.

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Johns company had a DSP setup which allowed the company to sell the stock directly to investors. Often times they offered it right to employees.

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DSO direct purchase program