Bradley Associates Madrid question: What is a DRIP?

http://ph.answers.yahoo.com/question/index?qid=20110905011432AAGPxdU

A company sponsored DRIP is a dividend reinvestment plan offered by a public company to promote long term stock ownership.
The basic idea is that you can purchase shares of a company directly from that company without paying any commission. This is most commonly done in a traditional DRIP by having all dividends paid on shares immediately used to purchase more of the same shares (i.e., the dividends are reinvested). Most plans also allow the investor to purchase additional shares directly from the company every quarter. Thus the two names for DRIP: Dividend/Direct Re-Investment Plan. But note the "re" in re-investment: most DRIPs do not provide a way for an investor to buy the first share.
DRIP means Dividend (or Direct) Re-Investment Plan. DRIPs offer an easy, low-cost way for buying common stocks and closed-end mutual funds. They are also a great way to invest a small amount each month. If you try to set aside a little each month, this can work extraordinarily well.