Direct Stock Purchase and Reinvestment Plans
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. Companies that pay a dividend can also enable those same individuals to automatically reinvest some or all of their dividends into the purchase of more stock from the same company.
EQ offers and administers low or no-cost investment plans for our clients who wish to expand their shareowner base and/or raise capital. We also offer tools to help you maintain, grow, or reduce your registered shareowner base – whatever your strategy, we can help you execute it.
Our experts guide you through the complexities of choosing between a registered or unregistered investment plan, selecting features and structuring a plan that best achieves your goals. We make sure all the i's are dotted and the t's are crossed, so you can be sure you're following the rules and regulations for your type of plan.
Why should my company offer a DSPP?
Direct stock purchase plans attract stable, long-term investors. More self-directed than your typical mutual fund or brokerage account investor, these shareowner seek a low-cost way to purchase stock from companies they trust, whether they believe in your product, want to support your mission, or simply like your financial performance. Individually registered by name, these shareowner can be a source of support when needed, for as long as they hold your stock.
Benefits of a DSPP
- Can be used to raise capital
- Builds stability within shareowner base with long-term investors
- Increases support and loyalty within your shareowner base
- Provides the ability to engage directly with shareowners
Waiver or Waiver Discount for Institutional-Level Capital Raise – Add this feature to certain types of investment plans to give your company institutional levels of capital at a low cost and easy-to-use activation process. Stock is issued from your shelf reserve and offered directly to professional or institutional investors who've expressed an interest. This flexible, low-cost feature can be set up in advance and activated when you need it to raise capital whenever the timing is right.
- Expert guidance
- Industry-leading service
- Dedicated Relationship Management team
- Full suite of plan offerings
- Low or no cost plans available
- Culture of accuracy and reliability
Customize your plan
You may decide to offer a dividend – or not. You may want a plan that lets you issue new shares or treasury shares to raise capital or to acquire shares through the open market. Fees can be structured to be shareowner paid, company paid, or a combination of both. Our experts can advise you on the right combination of plans and features to meet your goals.
Second-to-none service and expertise
Regardless of the plan you choose, as an EQ client, you and your shareowners will also enjoy the benefits of a dedicated Relationship Management team, our domestic Customer Care Center, and our full suite of industry-leading shareowner services. Our experience and proven processes ensure that your plan meets the necessary regulations and tax reporting requirements.
InvestDIRECT Plan – This direct stock purchase plan is low cost for investors, free to issuers. If you're worried about adding to your registered shareowner base, this plan pays for itself.
DRS Share Sale Plus Program – If the goal of your company is to reduce low value shareowner accounts, this program gives small or static shareowners an easy, cost-effective way to sell shares.