Automatic dividend reinvestment plans:
A) require that participating stockholders reinvest all of the dividends to which they are entitled.
B) grant all participants a discount on share purchases.
C) increase the relevance of corporate dividend policies.
D) help shareholders create their own homemade dividend policies.
E) are no longer available in the U.S.

Question

Quizplus · Accepted Answer

Automatic dividend reinvestment plans allow shareholders to reinvest their dividends into additional shares of the company's stock, effectively allowing them to create their own dividend policies by choosing to reinvest or receive cash.

Automatic Dividend Reinvestment Plans