Ann: Dividend Reinvestment Plan, page-4

Well said Wang. I think there are a couple of ways to look at it. Take DJW for example, trading at a 39% premium recently and its DRP price is the 5 day average sp ex div. This means that you get more shares via the DRP than you would have if it was priced at NTA. If then you get a SP collapse (like PGF did from $1.10 to $0.89), you have been given a bigger exposure to take a hit on. But the converse may also be true. Perhaps a more even outcome would be to price at NTA, who knows. But goddie3shoes, I don't think you can say people are getting 'sucked in'. That is just demonstrating a lack of understanding of how LICs and the premium/discount to NTA issue works.