A plan that allows shareholders to use their dividends to purchase additional shares of stock is called a:

Question

Quizplus · Accepted Answer

A dividend reinvestment plan (DRIP) allows shareholders to use their dividends to purchase additional shares of stock, often without paying a commission. This enables investors to automatically reinvest their cash dividends in more shares of the company's stock, often at a discounted price.

A Plan That Allows Shareholders to Use Their Dividends to Purchase