Question: All the statements about DRIPS below are false EXCEPT: Allows a shareholder to direct their dividend to purchase additional shares in the company Companies must

All the statements about DRIPS below are false EXCEPT: 


Allows a shareholder to direct their dividend to purchase additional shares in the company 


Companies must issue a dividend if the DRIP option of payment is chosen 


Taxation for DRIPS are similar to that of coupons for bonds


 DRIPS are taxed as capital gains for tax purposes

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