What is a potential drawback of investing through a DSPP? Option: "It can be difficult to sell stocks purchased through a DSPP", "It can lead to a less diversified portfolio", "DSPPs are only available to accredited investors", "DSPPs typically have high minimum investment requirements"

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What is a potential drawback of investing through a DSPP?

"It can be difficult to sell stocks purchased through a DSPP"

"It can lead to a less diversified portfolio"

"DSPPs are only available to accredited investors"

"DSPPs typically have high minimum investment requirements"

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Who might benefit most from using a DSPP?

"Investors who prefer to manage their own investments without professional advice"

"Day traders who frequently buy and sell stocks"

"Investors seeking short-term gains"

"Long-term investors interested in a specific company"

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Why is the Dividend Reinvestment plan not considered beneficial?

"It incurs high transaction costs for reinvesting dividends."

"It generates lower returns compared to the Growth plan."

"It doesn't offer any additional returns despite increasing units."

"It leads to a decrease in the number of units held."

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How can investors effectively utilize dividends to enhance their stock portfolio growth?

Withdraw dividends as a source of passive income

Utilize dividends to cover trading expenses

Reinvest dividends to leverage compounding effects

Allocate dividends to diversify into other asset classes

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What is a potential drawback of over-diversification in a stock portfolio?

Diminished returns due to the inclusion of less-performing assets

Higher transaction costs due to frequent trading

Increased exposure to market volatility

Increased complexity in managing a large number of stocks

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What is a potential downside of having a widely diversified mutual fund portfolio?

Increased exposure to market risk

Greater complexity in tracking individual stock performance

Reduced potential for substantial gains

Higher likelihood of significant losses