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.

---

Definitions:

Allostasis

“Balance through adaptation.” In this model of stress processes, the central nervous system (CNS) controls multiple interacting regulatory processes so that the best balance for each specific challenge is found, rather than returning to a fixed set point.

General Adaptation Syndrome

A model that describes the body's short-term and long-term reactions to stress, developed by Hans Selye.

Set-Point Model

A theory in psychology that suggests individuals have a pre-set level of happiness or well-being, which is largely stable over time despite changes in circumstances.

Homeostasis

The regulatory process organisms use to maintain stable internal conditions despite external changes.