Yes, I have bought stock that way. No hidden catches. It was actually a very good deal for me. Pennsylvania American Water Company offered to sell stock directly to it's water utility customers, several years ago. They gave a 5% discount off the market value, no brokers fees were involved, and they automatically reinvested dividends, which were about 4%. Within a few years my investment almost quadrupled. Unfortunately a German Company bought out PAWC, and I had to accept cash from the sale.