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Dividend Reinvestment Plans

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What advantages to the corporation and the stockholder do dividend reinvestment plans offer?

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Solution Summary

This solution discusses the advatnages to the corporation, investor and other advantages in 247 words.

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DRP's are offered by companies to their shareholders as a way to buy stock from the company in small to large amounts. This can be done on a monthly basis if the stockholder wanted. This type of plan also reinvests all or part of the dividends paid into more stock.

The advantages to the corporation is that their stock is being bought on a ...

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