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CTP · Question #76

(Topic 1) During the 1970s, many companies instituted dividend reinvestment plans (DRIPS). There

The correct answer is B. Leads to an increase in the number of small shareholders. See the full explanation below for the reasoning.

Question

  • (Topic 1)

During the 1970s, many companies instituted dividend reinvestment plans (DRIPS). There

Options

  • AReduces the expense of shareholder relations
  • BLeads to an increase in the number of small shareholders
  • CDoes not allow automatic reinvestment of dividends
  • DLeads to a reduction in the number of small shareholders

How the community answered

(44 responses)
  • A
    2% (1)
  • B
    80% (35)
  • C
    7% (3)
  • D
    11% (5)

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