Automatic dividend reinvestment plans:
I.require that stockholders reinvest all of the dividends to which they are entitled.
II.sometimes grant shareholders the privilege of purchasing additional shares at a discounted price.
III.help shareholders create their own homemade dividend policies.
IV.help make corporate dividend policies irrelevant to individual stockholders.
A)II only
B)III only
C)II and III only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Automatic dividend reinvestment plans grant shareholders the privilege of purchasing additional shares at a discounted price (II), help shareholders create their own homemade dividend policies (III), and help make corporate dividend policies irrelevant to individual stockholders (IV). However, they do not require stockholders to reinvest all of their dividends (I), as participation in the plan is generally voluntary.

Automatic Dividend Reinvestment Plans