What is a Direct Stock Purchase Plan (DSPP)?

"A plan that allows investors to buy stocks directly from a company, bypassing brokers" "A type of mutual fund that invests directly in stocks" "A government program that encourages stock ownership" "A high-risk investment strategy that involves buying stocks on margin"

What is one of the main advantages of using a DSPP?

"It allows for short-term trading" "It provides access to a wide variety of stocks" "It eliminates brokerage fees and commissions" "It guarantees a higher return on investment"

What is a potential drawback of investing through a DSPP?

"It can be difficult to sell stocks purchased through a DSPP" "DSPPs typically have high minimum investment requirements" "It can lead to a less diversified portfolio" "DSPPs are only available to accredited investors"

Who might benefit most from using a DSPP?

"Day traders who frequently buy and sell stocks" "Investors seeking short-term gains" "Long-term investors interested in a specific company" "Investors who prefer to manage their own investments without professional advice"

What is a key factor to consider before investing in a DSPP?

"The company's past stock performance" "The political climate" "The initial setup and ongoing administrative fees" "The availability of stock options"