Sharon Taylor uses all of her dividend income and capital gain distributions to purchase additional shares in her mutual fund.Which one of the following plans is she using?

Question

Quizplus · Accepted Answer

Sharon Taylor is using a reinvestment plan, which automatically reinvests her dividend income and capital gain distributions to purchase additional shares in her mutual fund. This allows her to benefit from compounding returns and potentially increase her long-term investment gains.

Sharon Taylor Uses All of Her Dividend Income and Capital