YoungPunk,

I spoke with our clearing firm to confirm how the dividends are reinvested here at TradeKing. The short answer is that the dividends are reinvested at a price that the security is trading at on the payable date. When we receive a dividend from the transfer agents our clearing firm goes through to approve the dividends that will be used to purchase additional shares for our clients. Depending on when the dividends are received and when the approval process is finalized would determine when the shares are reinvested. It is possible that you would receive a price towards the beginning of the trading day on the payable date but it is also possible it could be at a price later in the day. Please keep in mind that this is how our DRIP program works here at TradeKing. I am not aware of how other firms handle their DRIP programs.

Also, PRDinvestments is correct regarding partial shares. It would not be possible to purchase partial/fractional shares through our regular trading pages. However, with our DRIP program is it possible to receive fractional shares when a dividend is paid and reinvested. In the future if you went to sell the shares you would need to enter in the whole number below the total amount of shares. For example, if you had 50.25 shares of a stock and wanted to sell all of the shares you would enter in a sell order for 50 shares. When the trade executes the fractional shares would execute as well.

Best regards,

Stefan McVeigh
TradeKing Customer Support