What is a direct purchase program?

The direct shopping program is the program proposed by the company to directly provide shares for sale to the general public without passing through the broker. It is considered to be one of the simplest ways to get involved in the purchase of shares, because there are usually no minimal fees for buying or brokers. However, there may be several small settings for settling.

At first, those interested in a direct shopping program had to look for a public service, because they were the only types of companies that such a program could offer. However, changes in the rules of the Settings and Stock Exchange Commission (SEC), however, in the 90s, led to the growth of direct purchase programs, among other things. Today there are thousands of companies that offer a direct purchase program. However, investors must already own shares in the company's plan to own a dividend. With a direct shopping program, no previous ownship is required.

Variation of Direct ProgramPurchase is a program of purchase of employees. Many companies can offer it as an advantage to their employees. It allows employees to buy shares as part of the investment plan. In some cases, these shares can be purchased not only with money from the employee, but with additional contributions from the employer. This type of direct purchasing program allows employees to have a small amount of ownership in the company and is often a sales point for companies, both with employees' recruitment and among customers who can feel the ownership of employees, leads to a better product.

those looking for a direct purchase program may have to do a little research. These regulated SEC programs cannot be advertised and therefore it is harder to find. However, there are a number of websites that offer lists of these Companies offering a direct purchase program. This website can even offer a medium to make a purchase for a small fee.

Although it can be tempting to use PRA direct purchase of direct purchase simply to avoid mediation fees, is not a wise strategy, financial analysts say. Although there are good companies that offer supplies directly, there are also some that may not be so good in the future years. Therefore, careful study is recommended before any investment. Unlike savings accounts and some other types of bank accounts, investments in stocks are not guaranteed and can go up or down.