The Following Statements Are True of Dividend Reinvestment Plans (DRIPs)

question 69

Multiple Choice

The following statements are true of dividend reinvestment plans (DRIPs) :
I.They are offered by the companies to their shareholders.
II.Generally, new shares are issued at a discount.
III.The dividends are taxable as ordinary income.

• A)I only
• B)I and III only
• C)I, II, and III
• D)III only

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Definitions:

Lamellated Corpuscle

A type of sensory receptor found in the skin and mucous membranes that detects pressure and vibration.

20/100 Vision

A measure of visual acuity that indicates a person sees at 20 feet what a person with normal vision can see at 100 feet.

Feet

The lower extremity of the leg below the ankle, on which a person stands or walks.

Proprioceptors

Sensory receptors found in muscles, tendons, and joints, providing a sense of body position and movement.