A Dividend Reinvestment Plan (DRIP)differs from a Stock Dividend in Which

question 40

Multiple Choice

A dividend reinvestment plan (DRIP) differs from a stock dividend in which way?

• A) DRIPs allow investors to use dividends to buy new shares, while a stock dividend is a dividend paid in additional shares.
• B) Stock dividends allow shareholders to purchase additional shares with their dividends at a special discount, whereas a DRIP allows shareholders to purchase shares at the market price.
• C) DRIPs allow shareholders to buy additional shares at a discount, whereas with a stock dividend shareholders receive no discount.
• D) Stock dividends are voluntary whereas DRIPs are mandatory.

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Definitions:

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Multiple-Personality Disorder

Now known as dissociative identity disorder, a psychological condition where an individual possesses two or more distinct identities or personality states.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality into fantasy and delusion, and a sense of mental fragmentation.