For each transaction, a small service charge is deducted from your investment plus the pro rata amount of brokerage commissions (generally 5 cents per share for purchases and 15 cents per share for sales). A direct stock purchase plan (DSPP) is an investment plan that allows individuals to purchase stock in a company directly from the company or through their transfer agent. Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount. Email: investor_relations@homedepot.com 462 South 4th Street, Suite 1600 Individuals assume the risk of determining suitability of investing in stocks and are encouraged to seek professional advice before investing money in securities. What details are required to be mentioned on the Contract note issued by the Stock Broker? How a Direct Stock Purchase Plan (DSPP) Works, Direct Stock Purchase Plans and the Issuer, Does Your SIP DRIP? For the small investor who is ready to buy individual shares of a particular company to add to his portfolio to hold for the long term, a direct stock purchase plan may be a thrifty way to do so. What is the difference between the primary market and the secondary market?

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All Rights Reserved. What happens if the shares are not bought in the auction? Before Investing First Share does not recommend specific investments or give investment, tax or legal advice. Many plans can be set up as traditional or Roth IRAs or as Coverdell Educational Savings Accounts. We have adopted a dividend reinvestment and direct stock purchase plan to provide both existing shareholders and interested new investors a convenient and cost-effective method to purchase shares of our common stock. A direct stock purchase plan (DSPP) is a program that enables individual investors to purchase a company's stock directly from that company without the intervention of a broker. How long it takes to receive my money for a sale transaction and my shares for a buy transaction? What are Cumulative Convertible Preference Shares? If you already own Home Depot stock, you may invest cash dividends and optional cash purchases in additional shares of Company stock. A plan implemented by a corporation allowing purchase of shares, or fractions of shares, directly from the company, usually on a regular basis. The minimum deposits for participating can range from as little as $100 to $500. Financial Technology & Automated Investing. Such plans have lost some of their appeal over the last two decades as investing through online brokers has become less expensive and more convenient, though DSPPs still offer advantage for the long-term investor who doesn't have much money to get started. It's designed for individual investors who might otherwise avoid making small, long-term stock purchases because of large minimum brokerage fees. Common options include automatic reinvestment of dividends at no charge, safekeeping of stock certificates (also free) and the ability to transfer ownership of shares to another person. You always have control of your shares.

To choose your options for e-mail notification, please enter your e-mail address below and click Submit. In recent years many top companies have introduced direct stock purchase plans, or DSPPs, that allow people to avoid the commissions and fees brokers charge. If you don’t find the company you want on a transfer agent list, go to the Investor Relations page of the company web site. You can even set up a DSPP to automatically purchase and then reinvest through a dividend reinvestment plan (or DRIP). First Share does not own or sell securities, nor does it effect transactions in securities for the account of others. For companies that pay dividends, you can set up a DSPP to purchase the shares automatically and then reinvest them through an optional dividend reinvestment plan (DRIP). If you're new to investing through Direct Purchase Plans (DPPs) and Dividend Reinvestment Plans and want to know more, the First Share Investor's Guide to Investing with DRPs will tell you: First Share is not a broker-dealer or an investment advisory firm. He writes about small business, finance and economics issues for publishers like Chron Small Business and Bizfluent.com. These plans are usually administered by a third-party firm called a transfer agent. A few companies (Exxon Mobile is one) pay these purchase fees for you, so investing costs you nothing. The Securities and Exchange Commission (SEC) regulates a DSPP’s activity just as it does a brokerage's activities. You may begin participating in our plan by completing a plan enrollment form and returning it to Broadridge Corporate Issuer Solutions, Inc., our plan administrator.

For some, investing in DSPPs still is a good option. How do I place my orders with the broker or sub broker? Enrollment There may be one-time setup fees or automatic investment fees associated with a company’s plan, but they are usually a fraction of what a broker would charge. In recent years many top companies have introduced direct stock purchase plans, or DSPPs, that allow people to avoid the commissions and fees brokers charge.

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