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:

Deinstitutionalization

The process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder.

Misery

a state of great distress or discomfort of mind or body.

Clinical Psychologists

Professionals specializing in diagnosing and treating mental, emotional, and behavioral disorders through psychological techniques.

Deviance

Deviance refers to behaviors, thoughts, or actions that fall outside of social norms and are typically subject to negative sanction.