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Dividend Reinvestment

Dividend reinvestment is an option that lets you automatically invest cash dividends from common and preferred stocks in the underlying stock. You can turn automatic dividend reinvestment on or off at the account level only; that is, you cannot choose which dividends to reinvest. Dividend reinvestment is disabled by default.

Rules

• Dividend Reinvestment is available to IB LLC and IB UK clients only.
• Only US and Canada listed common and preferred stocks are eligible for Dividend Reinvestment.
• On the morning of the trading day following confirmation of the our receipt of a dividend payment on a stock, we will use the dividend payment (or cash-in-lieu of dividend payment if you have a margin account and your shares are on loan at the time of the dividend payment) to purchase additional shares of that stock.
• We will charge our customary commission for the purchase.
• Purchased shares will be allocated to clients on a pro rata basis (based on the dividend amount to which each participating client is entitled). In the event that the purchase executes in multiple smaller trades, you will receive the weighted-average price of such shares.
• If your account is in a margin deficit and can’t initiate new positions, dividends will not be reinvested, even if you have dividend reinvestment enabled.

To enable and disable automatic dividend reinvestment

Note: Proprietary Trading Group STL Masters . Advisor Masters and Broker Masters use the Dashboard to select a sub account or client account and enable or disable Dividend Reinvestment for those accounts

1. Click Settings > Account Settings.
2. If you manage or maintain multiple accounts, the Account Selector opens. Search for and select the account whose account alias you want to change.
3. In the Configuration panel, click the Configure (gear) icon for Dividend Reinvestment.

   The Dividend Reinvestment screen opens in a popup window.

   

4. Type your signature in the field provided, and then click Subscribe.
5. Click Close.

   Automatic dividend reinvestment is effective the next day.

6. To disable dividend reinvestment, in the Configuration panel on the Account Settings screen, click the Configure (gear) icon for Dividend Reinvestment. Click Unsubscribe in the popup window.