Automatic Reinvestment Plans

question 117

Multiple Choice

Automatic reinvestment plans

• A) are a good way to avoid taxes on dividends and capital gains.
• B) may involve exceptionally high transaction fees.
• C) do not allow for the purchase of fractional shares.
• D) are an excellent way to accumulate wealth through disciplined investing.

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Definitions:

Tab Leader

In document formatting, a visual guide that fills the space in a tabbed indent with dots, dashes, or lines to direct the reader's eye across the space.

Mirror Reflection

A reversed or flipped image of an object, mimicked in a way that it appears as if seen in a mirror.

Flip Horizontal

A digital image editing process where the image is reversed along its horizontal axis, creating a mirror image.

Rotate

Changing the orientation of an object around a pivot point without altering its location.