Buying stock directly from a company, also known as a direct stock purchase plan (DSPP), allows investors to purchase shares of a company’s stock without using a broker. This can be a cost-effective way to invest in companies that you believe in, and it can also give you the opportunity to buy stock at a discount.
There are a number of benefits to buying stock directly from a company. First, it can be more cost-effective than using a broker. Brokers typically charge a commission on each trade, which can add up over time. When you buy stock directly from a company, you avoid these commissions. Second, DSPPs often offer discounts on the stock price. This can be a great way to save money on your investment. Third, DSPPs allow you to invest regularly, which can help you to dollar-cost average your investments. This means that you will buy more shares when the stock price is low and fewer shares when the stock price is high, which can help to reduce your risk.
