Common use of Dividend Reinvestment Program Clause in Contracts

Dividend Reinvestment Program. If you enroll in Firstrade's Dividend Reinvestment Program (DRIP), your enrollment will activate within three business days after you notify Firstrade. Eligible Securities, which include U.S. stocks priced above $4.00 per share and selected foreign securities available for fractional investing, must be held in your account. You can choose to enroll individual securities or all Eligible Securities in DRIP, and any changes in eligibility may affect specific securities in the program. Eligible Cash Distributions, such as regular dividends, cash-in-lieu payments, and capital gains, will be reinvested in your chosen securities, provided you held them on the record date and through the payable date. Special dividends, late ex-date, liquidation, and miscellaneous payments may not be eligible distributions. DRIP transactions generally occur the next business day after funds are received, though there may be delays of up to five days. Participation in DRIP is voluntary, and Firstrade does not offer investment advice or guarantee profits through DRIP, nor does it charge fees for DRIP transactions. You can enable or disable DRIP for all securities or individual ones, with changes effective the next business day. To end DRIP participation, simply provide notice through the platform at least three business days before the record date of the next distribution. DRIP reinvestment may result in fractional shares, which entitle you to future dividends but may only include whole shares in corporate actions. Fractional shares cannot be transferred and will be liquidated if the account is transferred, closed, or reorganized. Callable fractional shares are subject to random selection, with the option to withdraw cash in lieu of partial holdings before a call announcement.