Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What differentiates a dividend reinvestment plan from a stock dividend? a) A dividend reinvestment plan allows investors to use dividends to buy new shares, while

What differentiates a dividend reinvestment plan from a stock dividend?

a) A dividend reinvestment plan allows investors to use dividends to buy new shares, while a stock dividend is a dividend paid in additional shares.

b) Stock dividends are voluntary whereas a dividend reinvestment plan is mandatory.

c) A dividend reinvestment plan allows shareholders to buy additional shares at a discount, whereas with a stock dividend shareholders receive no discount.

d) Stock dividends allow shareholders to purchase additional shares with their dividends at a special discount, whereas a dividend reinvestment plan allows shareholders to purchase shares at the market price.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Discussion Papers A Framework For Economic Forecasting

Authors: United States Federal Reserve Board, Neil R. Ericsson, Jaime Marquez

1st Edition

1288733585, 9781288733583

More Books

Students also viewed these Finance questions

Question

What types of taxpayers are more likely to be audited by the IRS?

Answered: 1 week ago