I have just started trading and am interested to know: how exactly do companies pay dividends to you?
Does your broker forward your bank account details to the company and they credit your account? Do they send you a cheque in the mail? Do they automatically re-invest the money in an equivalent number of additional shares?
Some companies have sent me forms in the mail where I can select how my dividends will be paid. If I don't specify a particular way, what is the default method?