What Are Automatic Dividend Reinvestment Plans Designed to Do

question 15

Multiple Choice

What are automatic dividend reinvestment plans designed to do?

• A)aid shareholders in creating their preferred dividend policy
• B)raise new equity capital for the firm through market repurchases
• C)eliminate excess illiquid shares from the open market
• D)help investors avoid paying taxes on dividends

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Amygdala

A small, almond-shaped cluster of nuclei located deep within the temporal lobes of the brain, involved in processing emotions such as fear and pleasure.

Soccer Player

An individual who participates in the sport of soccer, whether professionally or as an amateur, playing on a field team aiming to score goals.

Cerebellum

A region of the brain that plays a crucial role in motor control, and it may also be involved in some cognitive functions such as attention and language.