direct purchase program
This is an SEC-regulated program that enables a company to sell shares of stock directly to investors, without the involvement of a broker. This allows investors to avoid paying a commission. Direct purchase programs are useful when investing small amounts, as one does not have to be a current shareholder in order to purchase the shares. The company does not charge an investor a commission, but may charge the investor a small fee in order to set up a stock purchase account. This is also called a Direct Stock Purchase Plan (DSP).
