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Posted by Turtle on July 14, 2008, 7:08 am
Hi Don,
Its seems to be the same in Germany.
Thanks for the info. :-)
John
Don schrieb:
>
>> hi everyone,
>>
>> here in Germany one can invest in funds that pay out winnings or one
>> one can invest in funds that reivest their dividends.
>>
>> Are funds in the states that reivest their dividends called DRIPS?
>>
>> Just windering,
>> John
>
> DRIPS are not funds that reinvest dividends, but rather plans run by
> individual companies whereby your dividends are automatically reinvested
> in more shares of the same company's stock. The important feature of a
> DRIP is the fact that these dividends are reinvested at no cost or
> negligible cost. You are dealing directly with the company rather than
> through the intermediary of a broker. Usually you can also buy
> additional shares of stock in the same company without brokerage fees.
> Buy cutting out the middleman and related fees, these features in the
> long run can result in substantial savings.
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