- A process whereby the distribution from a limited partnership, real estate investment trust (REIT) or other pooled investment is automatically reinvested into common units or shares in a fund, often at a discount to the current market price. Investors can set up distribution reinvestment plans with the partnership itself, or with a broker through which the units are held.
Also known as a DRIP, but not to be confused with dividend reinvestment plans (also called DRIPs), which are found in many large-cap stocks and mutual funds. Most distributions are done quarterly, but some may occur on a monthly basis.
Investors who participate in these programs also generally have commissions and other fees waived, making it an advantageous and affordable way to grow their investment. Meanwhile, the financial managers have a stable way to grow assets with current investors.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
distribution — Selling a large lot ( lots) of a security in such a way that the security price is not heavily influenced. Bloomberg Financial Dictionary Corporate action that occurs when the issuer of a security delivers a particular benefit or proceeds ( e.g.… … Financial and business terms
Dividend reinvestment plan — A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor s… … Wikipedia
American Recovery and Reinvestment Act of 2009 — Stimulus bill redirects here. For other uses, see Stimulus bill (disambiguation). ARRA redirects here. For other uses, see ARRA (disambiguation). American Recovery and Reinvestment Act of 2009 Full title An act making supplemental appropriations… … Wikipedia
dividend reinvestment plan — ( DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company s stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. dividend… … Financial and business terms
dividend with reinvestment option — Also dividend reinvestment plan Euroclear Clearing and Settlement glossary A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must… … Financial and business terms
dividend reinvestment plan — Also dividend with reinvestment option A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must acquire on the market … Euroclear glossary
dividend with reinvestment option — Also dividend reinvestment plan A DRIP generates the distribution of a right which allows holders to exchange cash that they decide to reinvest for example shares that the company (or its agent) must acquire on the market … Euroclear glossary
jargon creep — n. The tendency for the use of jargon terms to expand into different contexts and to spawn variations on the original terms. Example Citations: Generating jargon comes naturally to business. So no one should have been surprised when entrepreneurs … New words
Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… … Wikipedia
Dividend — This article is about financial dividends. For dividends in arithmetic, see Division (mathematics). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis … Wikipedia