Asked by Sherwin Sanpedro on May 12, 2024
Verified
Automatic dividend reinvestment plans require that stockholders reinvest all of the dividends to which they are entitled.
Automatic Reinvestment
A plan that allows investors to automatically reinvest dividends or capital gains back into the security that generated them.
Dividends
Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.
- Comprehend the implications of dividend reinvestment plans.
Verified Answer
RR
Randa RegesMay 18, 2024
Final Answer :
False
Explanation :
Automatic dividend reinvestment plans often allow stockholders to choose whether to reinvest all, some, or none of their dividends, providing flexibility in how they manage their investments.
Learning Objectives
- Comprehend the implications of dividend reinvestment plans.
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