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:

American Prison System

The network of institutions within the United States tasked with incarcerating individuals convicted of crimes, often criticized for issues related to mass incarceration and racial disparities.

Bruce Western

A sociologist known for his research on the American criminal justice system, poverty, and inequality.

Secondary Deviance

Deviant behavior that occurs when an individual accepts the label of deviant and acts accordingly, often as a result of societal reactions.

Differential Association Theory

A sociological theory that suggests individuals learn deviant behavior from those close to them who provide models of and opportunities for deviance.