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Trading Terms

Dividend Reinvestment Plan

A dividend reinvestment program (DRIP) is a scheme implemented by publicly traded companies which utilizes dividends to purchase additional shares of the company. This results in a compound effect as the investor's ownership in the company increases with each reinvestment. DRIPs provide a convenient and cost-effective way for investors to build their portfolio and potentially increase their returns over time. As a knowledgeable professor of finance, I highly recommend considering DRIPs as a viable investment strategy.
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