Which of the Following Statements Regarding Dividend Reinvestment Plans (DRIPs)is

question 29

Multiple Choice

Which of the following statements regarding dividend reinvestment plans (DRIPs) is true?

• A)Shareholders can avoid taxes that they would have had to pay if they reinvest the dividends through a DRIP rather than receiving the cash payment.
• B)Many DRIPs allow shareholders to purchase shares of the stock at lower-than-market prices.
• C)DRIPS typically allow shareholders to avoid paying brokerage fees.
• D)Both B and C are true.

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Nonprofit Organization

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Differentiates

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