Sharon Taylor uses all of her dividend income and capital gain distributions to purchase additional shares in her mutual fund.Which one of the following plans is she using?

Question

Quizplus · Accepted Answer

Sharon Taylor is using a reinvestment plan, which allows investors to use their dividend income and capital gain distributions to purchase additional shares of the mutual fund without having to pay a commission. This is a common feature offered by mutual funds to encourage long-term investment and compounding of earnings.

Sharon Taylor Uses All of Her Dividend Income and Capital