dividend reinvestment plan


dividend reinvestment plan
A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must acquire on the market.

Euroclear glossary. 2008.

Look at other dictionaries:

  • dividend reinvestment plan — (DRIP) A plan under which shareholders can elect to receive shares instead of receiving a cash dividend. Once the shareholders elect to take shares, the company s registrars will arrange for the shares to be purchased on the market. Brokers costs …   Law dictionary

  • Dividend reinvestment plan — A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor s… …   Wikipedia

  • dividend reinvestment plan — ( DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company s stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. dividend… …   Financial and business terms

  • Dividend Reinvestment Plan — program that automatically reinvests dividends towards the purchase of additional shares (Finance) …   English contemporary dictionary

  • Dividend reinvestment plan (DRP) — Automatic reinvestment of shareholder dividends in more shares of a company s stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. Dividend reinvestment plans allow shareholders …   Financial and business terms

  • Dividend Reinvestment Plan - DRIP — A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of your investment. Most… …   Investment dictionary

  • dividend reinvestment — ( DRIP) Euroclear Clearing and Settlement glossary Dividend payment where cash dividend is rolled over into additional shares in the issuing company. Euroclear Clearing and Settlement glossary See also dividend reinvestment plan / dividend with… …   Financial and business terms

  • dividend reinvestment — (DRIP) Dividend payment where cash dividend is rolled over into additional shares in the issuing company. See also dividend reinvestment plan / dividend with reinvestment option …   Euroclear glossary

  • plan — ▪ I. plan plan 1 [plæn] verb planned PTandPPX planning PRESPARTX 1. [intransitive, transitive] to think carefully about something you want to do in the future, and decide exactly how you will do it: • We ve been planning this …   Financial and business terms

  • dividend — /div i dend /, n. 1. Math. a number that is to be divided by a divisor. 2. Law. a sum out of an insolvent estate paid to creditors. 3. Finance. a. a pro rata share in an amount to be distributed. b. a sum of money paid to shareholders of a… …   Universalium


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.