Legal Definitions - company-run dividend-reinvestment plan

A company-run dividend-reinvestment plan is a program offered by a company that allows shareholders to automatically reinvest their dividends into additional shares of the company's stock. This means that instead of receiving cash dividends, shareholders receive more shares of the company's stock.

Let's say you own 100 shares of XYZ Company, and the company offers a dividend-reinvestment plan. If the company pays a dividend of $1 per share, instead of receiving $100 in cash, you would receive 1 additional share of XYZ Company stock for each share you own. So, after the dividend is paid, you would own 101 shares of XYZ Company.

This can be a good option for long-term investors who want to increase their holdings in a particular company without having to buy additional shares on their own.