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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Definitions:

Victim

An individual who suffers harm or loss as a result of a crime, accident, or other event or action.

Sexual Contact

Any form of physical interaction between individuals that involves sexual or genital stimulation.

Sexual Behavior

Activities or actions related to the expression of sexuality and sexual feelings towards oneself or others.

Explicit Consent

Clear, unequivocal agreement to participate in an activity or process, often communicated verbally or in writing.