Dividend Reinvestment Plans (DRPs) allows shareholders to automatically reinvest all or portion of cash dividends.
Types include, Open-market Dividend Reinvestment Plans (DRPs), where a company purchases in the open market to acquire additional shares, or; New-issue Dividend Reinvestment Plans (DRPs), in which the company meets the need for additional shares by issuing them. Plans can be a combo of the two.
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