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What differentiates a dividend reinvestment plan from a stock dividend? a) A dividend reinvestment plan allows investors

Posted: Wed Apr 06, 2022 9:02 am
by answerhappygod
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.