### Question
Can you define what dividend reinvestment plan means?


### Answer
**Dividend reinvestment plan** is defined as the following in *26 U.S.C. § 1012*:

> any arrangement under which dividends on any stock are reinvested in stock identical to the stock with respect to which the dividends are paid

#### Citation:
  - *26 U.S.C. § 1012*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART II-BASIS RULES OF GENERAL APPLICATION**

