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:

Revenues

Income earned by a company from its business activities; essentially the gross income figure from which costs are subtracted to determine net income.

Expenses

Expenses or the spending of resources or taking on of liabilities over time due to the delivery or production of goods, provision of services, or other actions that are central to the entity's primary operations.

Utility Expense

Costs incurred by a business or individual for utilities such as electricity, water, and gas.

Cash

Cash refers to company-held currency and bank account balances that are readily available for use.