The Following Statements Are True of Dividend Reinvestment Plans (DRIPs)

question 57

Multiple Choice

The following statements are true of dividend reinvestment plans (DRIPs) :
I. offered by the companies to their shareholders
II. generally, new shares are issued at a discount
III. the dividends are taxable as ordinary income

• A) I only
• B) I and II only
• C) I, II and III
• D) III only

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