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 […]

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.