A direct stock purchase plan is a program that enables individual investors to buy a company's stock directly from that company without the intervention of a broker.
DSPP collect orders and make the actual stock purchases on a set schedule at an average price for another period, which means you don’t know the share price when you place a purchase order.
While not offered by all publicly traded firms, direct purchase plans are available at some of biggest companies in US, including Campbell Soup, Walmart, Coca-Cola, Intel & Starbucks.
DSPP allows investor to buy shares of company’s stock from the company itself or company’s selected agent. It allow investors to purchase fractional shares for as little as $25.
Direct stock purchase plans are commission-free or relatively low. These plans offer a quick and automatic way for long-term investors to accumulate shares over time.