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Definition of 'Treasury DRIP'
A dividend reinvestment plan that uses dividends 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%.
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Investopedia explains 'Treasury DRIP'
The other common type of dividend reinvestment plan is the market DRIP. In a market drip, a company uses its cash dividends 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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Search results for 'Treasury DRIP'
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http://www.investopedia.com/articles/retirement/08/investments-for-baby-boomers.asp
... The US government has never defaulted on a Treasury bond, making them a beacon ...
Investment No.6 - DRIP Plans Dividend reinvestment plans (known as DRIPs) allow ...
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... What is a DRIP? View Answer; After an initial public offering, does a company profit
from increases in its share price? ... View Answer; What is a treasury stock? ...
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http://www.investopedia.com/ask/stocks/
... What is a DRIP? View Answer; After an initial public offering, does a company profit
from increases in its share price? ... View Answer; What is a treasury stock? ...
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