There Are Two Types of Dividend Reinvestment Plans

question 66

True/False

There are two types of dividend reinvestment plans.Under one type of plan,the firm uses the cash that would have been paid as dividends to buy stock on the open market.Under the other type,the company issues new stock,keeps the cash that would have been paid out,and in effect sells new stock to those investors who choose to reinvest their dividends.

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Definitions:

Jumping

The action of propelling oneself into the air through the forceful extension of the legs, often used in sports, exercise, or as a means of bypassing obstacles.

Firearms

Portable weapons that launch one or more projectiles driven by rapidly expanding high-pressure gas produced chemically by propellant combustion.

Suicide Rate

A statistical measure representing the number of suicide deaths in a specified population or area over a given timeframe.

Married Persons

Individuals who are legally joined in matrimony, a state that entails certain legal rights, responsibilities, and social recognition.