Which of the Following Is NOT TRUE Regarding Dividend Reinvestment

question 41

Multiple Choice

Which of the following is NOT TRUE regarding dividend reinvestment plans (DRIPs) ?

• A)DRIPs avoid most or all transaction fees if administered directly by the company.
• B)By choosing a DRIPs option,a shareholder automatically buys additional shares of a company on a regular basis.
• C)DRIPs often allow investors to purchase a small number of shares per transaction.
• D)All of these statements about DRIPs are true.

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Definitions:

United States

A country in North America known for its significant influence in global economics, politics, and culture.

Price Of Apples

The cost at which apples are sold, influenced by factors such as seasonality, supply, and demand in the market.

Black Market

A market in which illegal trading takes place at market-determined prices.

Market Price

The present cost at which a service or asset is available for purchase or sale in the market.