dividend reinvestment plan

dividend-reinvestment plan. A stock-purchase program that allows investors to reinvest their dividends, and perhaps convert additional voluntary payments, into shares of the entity’s common stock, usu. with no sales charge, and sometimes at a discount from the stock’s market price. • Although the investor never receives the cash, it is still treated as income to the investor. An investor may be allowed to make optional cash purchases of additional stock. — Abbr. DRIP; DRP.

brokerage-run dividend-reinvestment plan. A formal or informal program managed by a brokerage and allowing shareholders to reinvest dividends in a portfolio, often at no cost. • Brokerage-run plans are usu. limited to dividend reinvestment.

company-run dividend-reinvestment plan. A program operated by a corporation for its own shareholders. • Company-run plans may offer additional features such as IRAs.

transfer-agent-run dividend-reinvestment plan. A program administered by a financial institution for several companies. • An investor can participate in more than one DRIP program simultaneously and also make additional cash investments in multiple companies.

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词条贡献者

译者Mathew，国际知名法学院国际仲裁与争端解决专业，擅长翻译各种与美国国内仲裁相关的法律文件。