Plans That Call for the Automatic Reinvestment of Shareholder Cash

question 74

Multiple Choice

Plans that call for the automatic reinvestment of shareholder cash dividends in more shares of the company stock are called ________.

• A)DRIPs
• B)ACORNs
• C)STRIPs
• D)IPOs

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Definitions:

Risk of Loss

The potential that an investment or transaction may result in loss, attributed to various factors.

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

Shipping Term

Refers to agreed terms between a seller and buyer that outline the details about the delivery of goods, including who is responsible for shipping costs and risk of damage.

Negotiable Document

A written instrument, such as a bill of exchange, promissory note, or check, that guarantees payment of a specific amount of money and is transferable among different parties.