By purchasing shares through a firm's dividend reinvestment plan (or DRIP), shareholders typically can acquire shares at a value that is above the prevailing market price.

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By participating in a DRIP, shareholders can typically acquire shares at a value that is below the prevailing market price, not above. This is because the shares are purchased directly from the company using dividends, which may be discounted or have no transaction fees.

By Purchasing Shares Through a Firm's Dividend Reinvestment Plan (Or