Dividend reinvestment plans involve the purchase of ____.
A) newly issued stock
B) existing stock
C) letter stock
D) both newly issued and existing stock

Question

Quizplus · Accepted Answer

Dividend reinvestment plans can involve the purchase of both newly issued and existing stock. Some companies use newly issued stock, while others purchase existing stock on the open market to fulfill their dividend reinvestment plan. Therefore, option D is the correct choice.

Dividend Reinvestment Plans Involve the Purchase of ____