Wednesday, July 13, 2011

On dividend reinvestment - If a company has a finite number of shares...?

...and many shareholders have their positions in automatic dividend reinvestment, where do the shares come from that they receive for their dividend reinvestments? The company officers usually own a certain percentage of their own shares, but I doubt these are what they give to their shareholders when dividends are reinvested. Where do the shares come from?

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