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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

1. Depending on your account, access the dividend reinvestment option from the following pages in Account Management:

• Individual, Joint, Trust, IRA, Small Business Accounts - Manage Account > Account Information > Details > Account Details. Enable dividend reinvestment by clicking the Edit link in the Account Configuration section.

• Proprietary Trading Group STL Master User - Manage Traders > Traders > View. Enable automatic reinvestment for an individual trading sub account by clicking the blue pen icon in the Dividend Reinvestment column.

• Advisor and Broker Master Users - Manage Clients > Dashboard. On the Dashboard, click the account row for the desired client account to open the Client Account Details page. Enable dividend reinvestment by clicking the Edit link in the Account Configuration section.

2. In the popup window that opens, read the important information, type your signature in the field provided, and then click Continue. Click the X in the upper right corner to close the popup window.

Automatic dividend reinvestment is effective the next day.

3. To disable automatic dividend reinvestment, click the same link you used to enable the option.
4. In the popup window that opens, click Unsubscribe. Click the X in the upper right corner to close the popup window.