That's because you'll
automatically buy more shares when prices are low and fewer when they're high, and you'll benefit from the long - term rising trend in the market.
This way
you automatically buy more shares with your fixed amount when the market dips and fewer shares when the market spikes.
I also setup automatic dividend reinvestment on this particular holding, so every time a Microsoft dividend hits dad's account
it automatically buys more shares.
MMM alluded to it in talking about automatically investing dividends and in turn
automatically buying more shares.
Not exact matches
But subsequent deals could be
more far - reaching: Consumers who
bought 23andMe kits and agreed to donate their genetic information to research
automatically consented for 23andMe to sequence their genomes, Forbes reports, and the company says it can
share anonymized, pooled information about their self - reported health traits without getting permission first.
That tends to be positive for any stock, since it leads
more institutional investors to
automatically buy its
shares.
When you follow this plan, you
automatically profit from dollar - cost averaging: You will
buy more shares when prices are low, and fewer
shares when prices are high.
If... and it's a big if... you can manage to continue contributing during downturns, such action will
automatically force you to
buy more shares when prices are low and fewer
shares when prices are high.
If a stock has increased in price to a point where you'd normally sell,
buying more shares (which happens
automatically with a DRIP) may increase your cost base of the
shares.
As the investors provide
more money over time and as the factors driving the market shift, the computer models
automatically buy or sell
shares to rebalance portfolios.
With Mutual Funds you can select the dividends to
automatically be reinvested instantly, meaning that instead of receiving cash in your account, that cash will instantly
buy more shares of the Mutual Fund.
If you are making regular deposits you can
automatically buy shares in a fund, and you can
automatically reinvest dividends paid every month for
more shares.
A DRIP lets you
automatically reinvest dividends by
buying more shares without paying a commission.
ShareOwner
automatically reinvests all cash dividends and
buys more shares — including fractional
shares to 4 decimals at no additional fee.