A Dividend Reinvestment Plan (DRIP)

question 66

Multiple Choice

A dividend reinvestment plan (DRIP)

• A)is offered by most stockbrokerage firms,rather than individual companies.
• B)is constructed to acquire a fixed number of shares when dividends are paid.
• C)accomplishes the same objective as dollar cost averaging;i.e. ,investing a relatively fixed amount of funds at regular intervals.
• D)offers investors the choice of receiving a dividend or having the company buy back some of their shares at a set price.

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Definitions:

Legalize

The process of making certain actions, substances, or behaviors lawful and permissible by official, statutory means.

Pendleton Civil Service Act

U.S. legislation enacted in 1883 that established the Civil Service Commission and marked the beginning of a merit-based system for federal employment instead of jobs being awarded based on political affiliation.

Bribery

The act of giving, offering, receiving, or soliciting something of value to influence the actions of an official or other person in charge of a public or legal duty.

Harrison's Victory

A reference to the Battle of Tippecanoe in 1811, where General William Henry Harrison defeated the Native American forces.