A Corporation That Has an Automatic Reinvestment Plan

question 83

Multiple Choice

A corporation that has an automatic reinvestment plan:

• A)Forces shareholders to automatically reinvest dividends in the company
• B)Never physically pays out declared dividends
• C)Helps investors plan their investment portfolio
• D)Gives shareholders the option to automatically reinvest dividends in the company

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Definitions:

Expected Return

A rephrased definition for Expected Rate of Return; it refers to the anticipated profit or loss from an investment based on its potential outcomes and their probabilities.

Historical Data

Past records or data points that are used for analysis or forecasting future trends.

Total Return

Total return is the overall return on an investment, including dividends, capital gains, and interest, over a specific period.

Dividend Income

Income received from owning shares of a company, distributed out of the company's profits.