Rebecca owns stock that pays a dividend. She does not want the cash now; instead she would prefer to have more shares of stock. She should use a

Question

Quizplus · Accepted Answer

A dividend reinvestment plan (DRIP) allows investors to reinvest their dividend payments to purchase additional shares of stock, without incurring any transaction fees. This is an efficient way to acquire more shares without having to pay additional money out of pocket. Therefore, a dividend reinvestment plan is the best choice for Rebecca to achieve her objective.

Rebecca Owns Stock That Pays a Dividend