An Investor Using the Buy-And-Hold Strategy Will Receive Dividends to Reinvest

question 66

Essay

An investor using the buy-and-hold strategy will receive dividends to reinvest. What dividend option do many companies offer that would make this strategy even more passive?

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Definitions:

Lapse of Time

The expiration of a specified duration which can affect contracts, rights, or obligations.

Delivery

The process of transporting goods from a source location to a predefined destination.

Option Contract

A legal agreement that grants a party the right, but not the obligation, to buy or sell an asset at a predetermined price and within a specified time frame.

Lease Agreement

A contract in which one party agrees to rent property owned by another party for a specified period of time, in exchange for payment.