Discount brokerages and DRIP's - how are they processed?
I just spoke with CIBC and the individual advised me that they buy the securities in the "open market" but when I probed on whether all clients holding the same stock would get the same reinvestment price, he wasn't sure.
This was surprising to me because I thought all DRIPs would be reinvested at the same price, regardless of whether you hold the securities at TD, CIBC, BMO or elsewhere and more importantly, all clients would also get the same price if they were purchased by the same institution. I had no idea DRIP's were purchased in the open market.
Are there any brokerage employees out there who can shed light on this for me?