Some Dividend Reinvestment Plans Allow the Shareholder to Purchase Shares

question 86

Multiple Choice

Some dividend reinvestment plans allow the shareholder to purchase shares of stock:

• A) from the company's future share issues.
• B) in the market through the company.
• C) at a premium from the market price.
• D) in the market through the shareholders broker.

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a period of time, considering both price appreciation and dividends or interest.

Dividend

Payments made by a corporation to its shareholders, usually as a distribution of profits.