Dividend reinvestment plans can involve the purchase of:

Question

Quizplus · Accepted Answer

Dividend reinvestment plans can involve the purchase of both newly issued stock and existing stock. It is beneficial for investors to reinvest their dividends because it can lead to compound growth over time. Therefore, having the option to purchase both newly issued and existing stock increases the opportunities for growth and diversification within the portfolio. Preferred stock is not typically involved in dividend reinvestment plans.

Dividend Reinvestment Plans Can Involve the Purchase Of