When dividends are announced, it is generally said how much money will be distributed for every 65,438+00 shares. For example, 10 shares are distributed to 2 shares, that is, 10 shares are distributed to 2 yuan.
If you choose to reinvest dividends instead of cash dividends, your dividends will be directly converted into fund shares according to the net fund value.
For example, if you have a fund of 65,438+0,000, the fund will receive a dividend of 65,438+00, and the net value of the fund after dividend is 65,438+0 yuan. If you choose cash dividend, you will get 200 yuan. If you choose dividend reinvestment, 200 yuan/1 yuan =200, you will get 200 funds, so your total fund share is 1200.