Asked by Mirales Jumuad on May 16, 2024
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Automatic dividend reinvestment plans help stockholders create their own homemade dividend policies.
Automatic Dividend Reinvestment
A program that automatically uses dividends paid by investments to purchase more shares of those investments.
Homemade Dividend Policies
Investment strategies whereby investors create their own dividend stream by selling a portion of their portfolio of equities.
Stockholders
Individuals or entities that own shares in a corporation, thereby having partial ownership and potentially receiving dividends.
- Determine the function and outcomes of automatic dividend reinvestment schemes.
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Learning Objectives
- Determine the function and outcomes of automatic dividend reinvestment schemes.
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