DIVIDEND REINVESTMENT PLAN
dividend reinvestment plan: translation
( DRP)
Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price.dividend reinvestment plans allow shareholders to accumulate stock over the long-term using dollar cost averaging. The DRP is usually administered by the company without charges to the holder. Bloomberg Financial Dictionary
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Also dividend with reinvestment option Euroclear Clearing and Settlement glossary
A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must acquire on the market. Euroclear Clearing and Settlement glossary
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dividend reinvestment plan ˌdividend reinˈvestment ˌplan noun [countable] FINANCE
in the US, an arrangement offered by companies to shareholders for their dividends to be paid in the form of new shares rather than cash:
• The company also announced a dividend reinvestment plan yesterday to encourage shareholders to buy new stock at a 3% discount.
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dividend reinvestment plan UK US noun [C] (ABBREVIATION DRIP)
► FINANCE »
The Company has a Dividend Reinvestment Plan which allows shareholders to reinvest their dividends through a specially arranged share dealing service.