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URL:  https://boards.fool.com/my-understanding-is-that-brokers-only-reinvest-10882238.aspx

Subject:  Re: Effects of Qtrly Reinv.? Date:  5/20/1999  9:28 PM
Author:  tmackfool Number:  8155 of 27954

My understanding is that brokers only reinvest dividends if the amount is enough to buy a full share. They don't purchase fractional shares as DRiP and DSP plans do. (Somebody please correct me if I'm wrong).

Trevar


Depends on the broker. I have set up dividend reinvestment with my Roth IRA at Waterhouse. When dividends are issued, Waterhouse gives me partial shares. But there is no opportunity to send in OCP's for partial shares. All new shares must be bought in whole number amounts, paying commission of course. I figured that I would rather have partial shares than the cash earning 4%in the money market. So it really isn't a DRIP where you can make monthly OCPs, but you do get dividend reinvestment.

Taylor
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