Direct Stock Purchase Plan (DSPP)

Categories: Stocks, Trading

If you like investing in stocks, but hate the idea of a stockbroker middleman taking a cut, definitely look into a direct stock purchase plan (DSPP). A direct stock purchase plan is a thing many companies offer, which allows individual investors to load up on their stock with low fees and discounts. Some companies might have a third party handle the actual transactions, and the rules for the companies that have DSPPs are all different, but oftentimes you only need a hundred or few hundred dollars to get started.

At the end of the day, DSPPs are a great way for budget investors to get some stocks that they’re eyeing. Be forewarned though: you can’t easily sell your shares again like you can through brokers, so make sure you want to hang on to them for awhile, and have a sell plan in mind when the time comes.

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