To take advantage of the opportunity to acquire additional shares of a company's stock without incurring any brokerage commissions, many investors participate in
A) initial public offerings.
B) dividend reinvestment plans.
C) deferred equity securities.
D) corporate trusts.

Question

Quizplus · Accepted Answer

Dividend reinvestment plans (DRIPs) allow investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date without any brokerage commissions. This is a popular way for investors to increase their holdings in a company over time.

To Take Advantage of the Opportunity to Acquire Additional Shares