dividend re-investment plan
A plan under which shareholders can elect to receive shares instead of receiving a cash dividend. Once the shareholders elect to take shares, the company's registrars will arrange for the shares to be purchased on the market. Brokers' costs and stamp duty or stamp duty reserve tax are met by the participants in the scheme by deducting these amounts from the dividend payment before the shares are purchased.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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