Direct Purchase Plans are established by companies to enable investors to purchase company shares without the intervention of a broker. Companies are willing to do this because they have found that Direct Purchase customers constitute a more stable shareholder base and are less likely to engage in active day trading. In return, shareholders benefit because the cost of purchasing shares with Direct Purchase is significantly lower than with standard brokers.
How do Direct Purchase Plans differ from Dividend Reinvestment Plans?
How do I enroll in a Direct Purchase Plan?
If I submit an order to purchase shares, at what point will I find out the exact price at which the order was executed?
Until now, the accepted practice has been for Direct Purchase programs to aggregate all purchase orders submitted over the course of a week and to execute them all at once. Needless to say, such a process introduces a fair degree of uncertainty to the process and likely dissuades many potential investors from participating in the program. American Stock Transfer & Trust Company, LLC is proud to offer the first Direct Purchase program featuring daily stock purchases. Orders submitted by 4:00 p.m. will, in ordinary circumstances, be executed no later than the following business day.
Through our sister company AST Investor Services, an online retail investor portal, investors are offered expanded online services. To learn more about how AST Investor Services can assist you with your investments, please go to www.astinvestor.com.