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.