Direct Investment: You can make a direct investment in a company’s stock through dividend reinvestment plans (DRIPs) and direct purchase plans (DPPs). If a company in which you own stock offers a DRIP, you have the opportunity to re-invest cash dividends and capital gains distributions in more stock automatically each time they are paid. In the case of DPPs, also known as direct stock purchase plans (DSPs), companies can sell their stock directly to investors without using a brokerage firm as intermediary. Direct investment also refers to long-term investments in limited partnerships that invest in real estate, leased equipment, and energy exploration and development. In this type of investment, you become part owner of the hard assets of the enterprise. You realize income from your investment by receiving a portion of the business’s profits, for example, from rents, contractual leasing payments, or oil sales. In some cases you realize capital gains at the end of the investment term, if the business sells its assets. These DPPs are largely nontraded and have no formal secondary markets. This means you will often have to hold the investment for terms of eight years or more, with no guarantee that any of the income or capital gains will materialize. Many people make direct investments because there can be significant tax benefits, such as tax deferral and tax abatement, depending on the investment.

 

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Direct Investment: You can make a direct investment in a company’s stock through dividend reinvestment plans (DRIPs) and direct purchase plans (DPPs). If a company in which you own stock offers a DRIP, you hav . . . View Full Definition

Treasury Direct: Treasury Direct is a direct investment system, offered through the US Department of the Treasury, lets you make competitive or noncompetitive bids for new issues of US Treasury issues. Once . . . View Full Definition

Marketing Director: Individual responsible for marketing a managed care plan, whose duties include oversight of marketing representatives, advertising, client relations, and enrollment forecasting.

Monthly Investment Plan: A plan in which a certain amount is invested each month in order to benefit from dollar cost averaging.