Corporate Actions

Dividend Reinvestment Plan

Definition

What is Dividend Reinvestment Plan?

A programme that automatically uses cash dividends to purchase additional shares or units.

Example in practice

How This Looks in Practice

A ₦5,000 dividendA payment made from a company's profits to eligible shareholders. buys more shares instead of being paid into the investorA person or organisation that commits capital with the expectation of a financial return.'s bank account.

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Related Terms

Corporate Actions

Rights Issue

An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

Corporate Actions

Bonus Issue

An issue of additional shares to existing shareholders without a cash payment.

Corporate Actions

Stock Split

An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.

Corporate Governance

Proxy Vote

A vote cast by another person or electronically on behalf of a shareholder.

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