Pardon the Jargon: Terms you need to know
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The Eighth Wonder of the World
In Australia, most of the big companies will pay a dividend. And how it comes into your bank account is traditionally they used to send physical checks. So there is a concept called the dividend reinvestment plan. What that allows you to do is so let's say you owned 100 shares and they were going to pay you $52. You could say, hold on Woolies. I really like you as a company rather than giving me cash from the business. If you plan on staying with the company for a long period of time and reinvesting your dividends year after year, that's where you can really start to generate some solid compound.
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