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A dividend reinvestment plan or DRIP can be a win-win-win for those that utilize the plan, current shareholders and the fund managers themselves. There seems to be a similar standard that we typically see as far as how closed-end funds implement such a plan. This is a more in-depth look at DRIPs more specifically from when we covered the subject of "How Do Closed-End Funds Grow Their Share Count?"
This relates to that previous piece as it is one of the three ways that funds grow their share count and ultimately,