Automatic Dividend Reinvestment Plans

question 80

Multiple Choice

Automatic dividend reinvestment plans:

• A) require that participating stockholders reinvest all of the dividends to which they are entitled.
• B) grant all participants a discount on share purchases.
• C) increase the relevance of corporate dividend policies.
• D) help shareholders create their own homemade dividend policies.
• E) are no longer available in the U.S.

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Definitions:

Improvements

Enhancements or upgrades in processes, products, or services that increase efficiency, effectiveness, or satisfaction.

Ethical Behavior

Conducting oneself according to accepted moral principles and standards of right and wrong, especially within a professional context.

High Performance

Demonstrating an exceptionally high level of ability, productivity, or effectiveness in a particular task or over a period in a job role.

Long-Term Relationships

Connections or associations between parties, characterized by durability, ongoing interaction, and sustained mutual interest or benefit.