A reinvestment plan in which a publicly-traded company allows shareholders to buy more shares with the proceeds from their dividends at no commission or other transaction charge. This encourages shareholders to leave their capital with the company and, in return, allows them the possibility of a higher return.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A dividend reinvestment plan that offers direct purchase of a firm's shares. A super DRIP allows an investor to buy initial shares from the firm, often with no transaction charge. Also called no-load DRIP.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.