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A Dividend Reinvestment Plan (DRIP)

Question 28

Multiple Choice

A dividend reinvestment plan (DRIP)


A) is offered by most stockbrokerage firms,rather than individual companies.
B) is constructed to acquire a fixed number of shares when dividends are paid.
C) accomplishes the same objective as dollar cost averaging;i.e. ,investing a relatively fixed amount of funds at regular intervals.
D) offers investors the choice of receiving a dividend or having the company buy back some of their shares at a set price.

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