Which of the following is NOT a choice in deciding what to do with dividends?
A. take cash dividends
B. reinvest the dividends
C. refuse the dividends
I think it is B.
Reinvesting dividends allows you to:
A. buy more shares of your original investment
B. buy more shares of another company you are interested in
C. receive dividend checks
D. none of the above
i think it is C.
Nooooo! Both are wrong.
Please make sure you understand what dividends are.
1. is A. 2. is B
If you want an education, stop guessing and read your text.
Do not post these questions again here.
well excuse me its not my problem plus there wasn't any reading in my lesson this week so how am i supposed to know the answers ?
http://www.investopedia.com/terms/d/dividend.asp#axzz1j5siof6O
http://wiki.answers.com/Q/Can_a_shareholder_refuse_to_take_a_dividend
http://www.buyupside.com/makingmoney/dividendreinvestmentintro.htm
it still doesnt help with understanding the question
To determine the correct answer to the first question, we need to understand what each choice means:
A. Taking cash dividends means receiving the dividend amount in cash directly.
B. Reinvesting the dividends means using the dividend amount to purchase more shares of the same company.
C. Refusing the dividends means not accepting or receiving the dividend amount.
Based on these explanations:
Choice B (reinvesting the dividends) is not a decision regarding what to do with dividends.
Therefore, you are correct in identifying B as the answer to the first question.
For the second question:
A. Buying more shares of your original investment is a possible outcome of reinvesting dividends.
B. Buying more shares of another company you are interested in is also a potential use of reinvested dividends.
C. Receiving dividend checks is not a result of reinvesting dividends because the dividends are not being taken in cash.
Since none of the choices mentioned receiving dividend checks, the correct answer is D (none of the above).
Great job!