> An early bounce has faded as Asian markets remain weak and the market has been hit by selling related to margin calls, dividend reinvestment plans on Westpac and ANZ, and expectations of share market selling when the ban on shorting non-financials is lifted Wednesday.
> He added that ANZ and Westpac continue to be restrained by selling related to their dividend reinvestment plans.
taken from from DJ news wires.
Can someone explain why a DRP would cause selling?
I understand there will be more shares issued, so if you don't participate your holding will be diluted.. but isn't this is already priced in?