Answer to Question #13629 in Other Management for Tiarra Jefferson

Question #13629
Which of the following statements are correct? One disadvantage of dividend einvestment plans is that they increase transactions costs for investors who want to increase their ownership in the company
1
Expert's answer
2012-08-30T10:03:19-0400
When dividends are reinvested the transaction costs for investors who want to increase their ownership in the company increase. This reinvestments increases Own equity of the firm and automatically increases price of share thus for those who want to increase their ownership, for example by buying more shares, it leads to increasing of transaction costs

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS