A Long-Term Investment Technique That Allows Investors the Option to Reinvest

question 30

Multiple Choice

A long-term investment technique that allows investors the option to reinvest cash dividends to purchase stock of the corporation is called:

• A)a direct investment plan.
• B)a dividend reinvestment plan.
• C)dollar cost averaging.
• D)buy-and-hold.
• E)day trading.

---

Definitions:

Soluble

The ability of a substance to dissolve in a solvent, forming a solution.

Equilibrium

A state in which opposing forces or influences are balanced, often used in chemical contexts to describe reactions.

Aerobic Respiration

The process by which cells use oxygen to break down glucose and produce ATP, involving the Krebs cycle and electron transport chain.

Pyruvate

An important organic acid in biochemistry, serving as an end product of glycolysis and a substrate for the citric acid cycle.