What is usually offered to DRIp enrollees when a firm issues new stock?

When a firm issues new stock as part of a Dividend Reinvestment Plan (DRIP), it typically offers the new stock at a discount from the current market price. This incentive encourages shareholders to reinvest their dividends into purchasing additional shares rather than taking cash. By offering new shares at a discount, the company maintains investor loyalty and reduces cash outflow while simultaneously supporting its share price.

The option to provide shares at a discount also aligns with the firm's goal of increasing its equity base without incurring the costs associated with issuing new shares in the open market at full market value. This strategy is beneficial for both the company, which strengthens its capital position, and the investors who gain the advantage of acquiring shares at a reduced rate compared to the prevailing market price.

The other options do not align with the common practices of a DRIP. Options to buy at the current market price, existing shares at premium prices, and fixed-income securities do not typically relate to the mechanics of DRIP offerings, which fundamentally focus on the reinvestment of dividends in a manner that enhances shareholder value.