What Is a DRIP as It Applies to Stocks? Suppose

question 102

Essay

What is a DRIP as it applies to stocks? Suppose you own 5,000 shares of Rough Rider Disposal Inc. and the firm has a DRIP program. Rough Rider pays dividends at the rate of $1.50 per share per year and has a current price of $57 per share. How many additional shares of stock can you receive if you elect to receive your dividends via the DRIP option? Why is this an advantage over purchasing the stock on the open market?

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Definitions:

Intoxicated Person

An individual who is under the influence of alcohol or other psychoactive substances, impairing cognitive and motor functions.

Physical Exertion

The act of engaging in vigorous physical activity that requires effort and energy.

Al-Anon

A support group designed for the families and friends of individuals suffering from alcoholism, offering a community focused on sharing experiences and strategies for coping.

Alcoholics Anonymous

A self-help group and fellowship of individuals who share their experience, strength, and hope with each other that they may solve their common problem and help others to recover from alcoholism.