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Securities > Dividend Re-investment Plan (Drip)

The following information is about Dividend Re-investment Plan (Drip).

Dividend Re-investment Plan (Drip) Defined

A program offered by some corporations (particularly investment companies) in which shareholders may opt to use their dividends to purchase additional shares in the corporation in lieu of receiving cash payments. Since the shares are purchased directly from the corporation, brokerage fees do not apply. However, the shareholder is still responsible for taxes on the dividends.

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