Treasury DRIP

外汇网2021-06-19 13:32:31 89

A pidend reinvestment plan that uses pidends to purchase more shares directly from the company's treasury stock. Oftentimes, because the company is issuing the shares, it will offer the shareholder a small discount on the share price; this discount typically ranges from 2-4%.

Taobiz explains Treasury DRIP

The other common type of pidend reinvestment plan is the market DRIP. In a market drip, a company uses its cash pidends to purchase shares on the open market, rather than from its treasury. Using a DRIP can help companies to develop investor loyalty and a stable shareholder base. The advantages to shareholders include convenience and a lack of commission charges on acquiring new shares through a DRIP program

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