Automatic Reinvestment Plans

question 117

Multiple Choice

Automatic reinvestment plans

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

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Definitions:

Single-Blind

A study design in which either the participants or the researchers are unaware of which interventions the participants are receiving to prevent bias.

Participant Expectancy

The phenomenon where a participant's expectations or beliefs influence or bias the outcome of an experiment.

Double-Blind

A type of study or clinical trial design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.