Automatic Reinvestment Plans

question 27

Multiple Choice

Automatic reinvestment plans

• A) are a good way to avoid taxes on dividends and capital gains.
• B) do not allow for the purchase of fractional shares.
• C) are an excellent way to accumulate wealth through disciplined investing.
• D) may involve exceptionally high transaction fees.

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Definitions:

Discord

Disagreement or conflict among people, groups, or things.

Prisoners' Dilemma

A scenario in game theory where two individuals acting in their own best interest do not result in the optimal outcome for either of them.

Confesses

To admit or acknowledge something typically that one feels guilty or ashamed of, often involving a wrongdoing.

Public Goods Dilemma

A situation in which individuals must choose between self-interest and collective benefit in the context of resources that are freely available to all regardless of individual contribution.