Dividend Reinvestment Plan

Dividend Reinvestment Plan

Dividend Reinvestment Plan means:
the automatic reinvestment of shareholder dividends in more shares of the company's stock. Reinvested dividends are taxable when credited to the taxpayer's account, even though no cash is received. Since the reinvested dividends also increase the taxpayer's basis in the stock, it is important to retain all records for calculation of gain or loss upon sale.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.


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