|
Dividend Reinvestment Plan - a dividend reinvestment plan is offered by some corporations as a way to reinvest capital gains, and cash dividends without paying fees to a broker or a brokerage firm. By reinvesting the dividends, or capital gains, you can purchase more shares of the business without paying any fees or commissions to brokers... The first share has to be purchased through a broker, but with a DRIP ( dividend) reinvestment plan) all future profits may be reinvested automatically with out paying broker fees to purchase shares on your behalf. Some DRIP plans even allow you to make cash purchases of additional shares. |