dividend reinvestment plan
- dividend reinvestment plan
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A plan under which shareholders can elect to receive shares instead of receiving a cash dividend. Once the shareholders elect to take shares, the company's registrars will arrange for the shares to be purchased on the market. Brokers' costs and stamp duty or stamp duty reserve tax are met by the participants in the scheme by deducting these amounts from the dividend payment before the shares are purchased.
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
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Dividend reinvestment plan (DRP) — Automatic reinvestment of shareholder dividends in more shares of a company s stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans allow shareholders … Financial and business terms
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Dividend Reinvestment Plan - DRIP — A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of your investment. Most… … Investment dictionary
Dividend Reinvestment Plan — program that automatically reinvests dividends towards the purchase of additional shares (Finance) … English contemporary dictionary
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dividend reinvestment — (DRIP) Dividend payment where cash dividend is rolled over into additional shares in the issuing company. See also dividend reinvestment plan / dividend with reinvestment option … Euroclear glossary
plan — ▪ I. plan plan 1 [plæn] verb planned PTandPPX planning PRESPARTX 1. [intransitive, transitive] to think carefully about something you want to do in the future, and decide exactly how you will do it: • We ve been planning this … Financial and business terms
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