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In this arrangement, once you have purchased at least one share, dividends paid on all holdings are used to buy new shares. That first share must be registered in

your name, not in street name. Note that a company-sponsored DRIP might be run by the company directly, or by a bank. The latter arrangement tends to lead to fees that quickly become onerous for small investors (more later).

It is a dividend reinvestment plan offered by a public company to promote long term stock ownership. The plan typically allows for an investor to invest and reinvest dividends in the company's stock.

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Q: What is a company-sponsored DRIP Dynamic Wealth Management asks?
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What does a drip of honey on the money mean?

In reference to Luke Bryan's lyrics to "Drunk on You", it means exactly what you think it does.


How does a US 801 k plan works?

Create an investment account at reputable brokerage ( Fidelity, Charles Schwab, E-Trade etc.). start buying companies that give dividends ( look for ones that have yields of 3.5 % or more). Sign up for Dividend Reinvestment or DRIP. Your returns on average will be better than regular IRA's or 401(k) without DRIP. That is it.


How can one go about buying stocks without a broker?

One possibility to buy stocks without including a broker in the transaction would be for example to use "DRIP" (that is "Direct ReInvestment Plans"). Unfortunately this is not quite common and not all companies offer that type of investment, so by the end of the day one has to contact the investor relations department in order to find out if they offer DRIP investment or not.


What are compound stock shares?

I believe a "Compound Share" is simply another name for a Dividend Reinvestment Plan or DRIP. I was led to this site after reading some internet junk mail that mentioned an investment opportunity of investing in Compound Shares, and careful reading between the lines led me to the conclusion that they were talking about DRIP programs. I believe the selection of the term 'Compound Shares' was specifically designed to obfuscate their intention, which was to sell subscriptions to some kind of program about DRIPs. Google 'DRIP' and you will find out everything you need to know, but I'll briefly summarize. Many companies offer DRIP programs as a way to make their shares available directly to the public, often with no cost at all to the purchaser (although there's usually a minimum investment, and some DRIP programs require you to already be an owner of the stock via an over-the-counter purchase (through some kind of broker.) Often this is handled through the share reqistration agent as a service to the stock issuer (and the issuer covers all the expenses.) It's a pretty good deal, when you consider that as an investor you are paying little or no fees for the registration agent to handle your stock. A downside is you lose some flexibility in selling your stock. You may be able to issue a sell order, but have little control over when it is executed, and lose the ability to issue limit orders and things like that. These programs probably vary somewhat. The 'compounding' is implicit in a DRIP, because dividends will be reinvested in fractional shares. I have done this with shares in my company. I purchased the shares through a corporate purchase program, but then transferred my shares into the DRIP program so that my dividends would be automatically reinvested in the stock, otherwise, the dividends would only be available as a cash payment. This has had no cost for me, and over the years I've accumulated quite a few additional shares from the 'drip.' I also know that in my program there is no cost to issue certificates, to sell, or to transfer. In fact, I've done all three. These programs may vary though. I am in no way a finance professional, I just took some finance courses in business school and listen faithfully to Bob Brinker's radio show. He occasionally fields questions on DRIP programs there, which is where I first heard of it.


What companies offer the 801k plan?

801(k ) plans allow you to buy company stock directly from the corporation, a glorified dividend reinvestment plan (DRIP). More than half of the S&P 500 offer these plans, as do many other companies.

Related questions

What is the future tense of the verb drip?

The future tense of the verb "drip" is "will drip."


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How do you say 'drip' in Japanese?

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What was songhai wealth?

Songhai was wealthy due to its control of trans-Saharan trade routes, particularly in gold and salt. The empire's strategic location allowed it to tax and benefit from the lucrative trade passing through its territories, bolstering its economy and wealth. Additionally, Songhai's strong military and organized governance helped maintain its wealth and power.


What it the future tense of the word drip?

The future tense of the word "drip" is "will drip."


What is the opposite of drip?

The opposite of drip would be not to drip. However, on the other end of the scale of intensity (volume) from drip is "gush."


How long does it takes 30857 drops to drip from 1 gallon of fluid?

The answer will depend on the drip rate. The drip rate will depend on the viscocity of the fluid which is not known.The answer will depend on the drip rate. The drip rate will depend on the viscocity of the fluid which is not known.The answer will depend on the drip rate. The drip rate will depend on the viscocity of the fluid which is not known.The answer will depend on the drip rate. The drip rate will depend on the viscocity of the fluid which is not known.


What is future tense for drip?

Will drip.


What is the future tense for drip?

Will drip.


Is it euthanasia if immediately after being administered a morphine drip a patient was given 5 syringes within 30 minutes from the drip and as a result the Breathing and heart beat stopped?

I feel that the answer is : does the pain overide quality of life, because in the end pain management will probably win


What is the future tense of drip?

The future tense of "drip" is "will drip" or "is going to drip."