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

question 3

Multiple Choice

The following statements are true of dividend reinvestment plans (DRIPs) :

• A)They are offered by the companies to their shareholders.
• B)They are offered by the companies to their shareholders and the dividends are taxable as ordinary income.
• C)They are offered by the companies to their shareholders; generally, new shares are issued at a discount; and the dividends are taxable as ordinary income.
• D)The dividends are taxable as ordinary income.

---

Definitions:

Euphoric High

An intense feeling of happiness, confidence, or well-being, often artificially induced through the use of substances.

Ecstasy

Commonly known as MDMA, a psychoactive drug primarily used for recreational purposes, noted for its effects on enhancing sensory perception and increasing energy and emotional warmth.

Sensory Deprivation

A state in which an individual receives significantly reduced sensory input, which can lead to various cognitive and psychological effects.

Perceptual Distortions

Refers to inaccuracies or alterations in the perception of reality, often due to physiological or psychological factors affecting the sensory processes.