Just called schwab for some answers regarding divy reinvestment , As i thought the subject talk on the board was way off base , Seems to me anyway .

If you hold a security in a brokerage account and you elect to have AUTOMATIC divy reinvestment , When the divy is received by your brokerage house ( schwab in this example ) , They total the amount of money received from the co ( edig ) BUY THE SHARES FROM THE OPEN MARKET over a 24 hr period and then average the cost out to divide the newly accuired shares to each account as per each indivduals amount of cash from the divys.

The shares come from the open market and is the primary reason for price spikes of PPS 1-2 days following the divy pay out.

The share count does not chage , Except the share count in YOUR PORTFOLIO !

Ric