A dividend reinvestment plan ________ on the security.

Name: A dividend reinvestment plan ________ on the security.
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Question

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A dividend reinvestment plan allows the investor to reinvest the dividends received on a security back into more shares of that security. This increases the number of shares owned by the investor, which can lead to an increase in the return if the security's price increases over time. Therefore, a dividend reinvestment plan can increase the return on the security.

A Dividend Reinvestment Plan ________ on the Security