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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: Re: So many questions, Date: 11/5/1999 2:27 PM
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Will any quarterly dividends be automatically deposited into the account? And if so should they be immediatly be combined with the odd few dollars left over from the orrigional stock purchase, and used to buy another share of one of the eight? Or will that be a wasted $7.00? Does the cash in this kind of account earn any interest?

Any left over money or dividend income that is in your account will sweep automatically into a money market fund where you will get higher interest.

It is usually not a good idea to reinvest dividend income because of the commissions. As a rule don't let your commissions be higher than one or two percent. Wait until the next time you are buying a larger block of stock and use that extra money then.

arkayem
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