DSP

Categories: Stocks, Investing and Trading,

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.