The transactions for one stock with dividends reinvested in
additional shares would be 4 quarterly dividends received
plus 4 quarterly dividend purchasing aditional stock. This
would be a total of 8 transactions.

How many transactions would it be if the dividends went
directly to the cash account? Would this be considered 4
cash deposits still resulting in 8 total transactions?

Ray Marchand

On 10/22/07, Ray Marchand wrote:
> How many transactions would it be if the dividends went
> directly to the cash account? Would this be considered 4
> cash deposits still resulting in 8 total transactions?

This would be four transactions, if I get what you are saying.
Here's what happens in an example club:

10 members x 12 payments per year = 120 transactions
10 stocks x 4 dividends per year = 40 transactions
3 stock buy or sell transactions per month x 12 months = 36 transactions
Total = 196 transactions per year

If your club is twice as active as this, you'll be under the 400
transaction limit.

Cheers,
Rob