Depending on which platform you choose to invest on, you may have the option to reinvest your dividends as opposed to receiving them in cash. This may seem like a dumb question, but how does this actually work? Say you own a single stock valued at 90 dollars that pays a 2 dollar dividend one quarter. If you had turned the option to reinvest dividends on, I would assume your investing program would try to buy another share in that company with the two dollars it paid out. However, most platforms do not allow you to purchase a fraction of a stock. What would happen to your money then? Would it stay in your account until you have enough to purchase? Can anyone with any experience touch on this for me?
Submitted April 28, 2019 at 08:10PM by mittenman44 http://bit.ly/2V3izJ8
