A dividend reinvestment plan (DRIP) differs from a stock dividend in which way?
A) DRIPs allow investors to use cash dividends to buy new shares, while a stock dividend is a dividend paid in additional shares.
B) Stock dividends allow shareholders to purchase additional shares with their dividends at a special discount, whereas a DRIP allows shareholders to purchase shares at the market price.
C) DRIPs allow shareholders to buy additional shares at a discount, whereas with a stock dividend shareholders receive no discount.
D) Stock dividends are voluntary whereas DRIPs are mandatory.
Correct Answer:
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