There Are Two Types of Dividend Reinvestment Plans

question 66

True/False

There are two types of dividend reinvestment plans.Under one type of plan,the firm uses the cash that would have been paid as dividends to buy stock on the open market.Under the other type,the company issues new stock,keeps the cash that would have been paid out,and in effect sells new stock to those investors who choose to reinvest their dividends.

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Definitions:

Impression Management

The process by which individuals attempt to control the perceptions and opinions others have of them, often through self-presentation techniques.

Tactics

Strategies or actions carefully planned to achieve a specific end.

Talk Negatively

Engaging in conversation that focuses on criticism, pessimism, or highlighting flaws without constructive purpose.

Exit Statement

A formal declaration made when leaving a position or situation, sometimes including reasons for the departure.