: The "fire and forget" nature of automated monthly buys supports dollar-cost averaging , reducing the temptation to time the market.
: Many DSPPs include a Dividend Reinvestment Plan , where any dividends earned are automatically used to buy more shares. Why Choose a Direct Plan?
: These plans are typically managed by a transfer agent (such as Computershare or Broadridge ) rather than the company’s internal staff.
: Shareholders in direct plans often receive materials and voting rights directly from the company or its agent rather than through a brokerage intermediary. The Trade-Offs
The convenience of going direct comes with significant limitations compared to a standard brokerage account: How to Buy Stock Directly - EquityNet
