LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

RE:9.35 share repurchase for me at RBC DI

[pjn0987654321]

Each company can use whatever formula it wants.  A common formula is to take the average closing price over a period of time and then apply the DRIP discount.  If the resulting price of the DRIP shares is higher than the current market price, it usually means that the market price is going down faster than the DRIP discount. 

For some companies, there is no DRIP discount.  Then you are getting some kind of average price. 

For some companies, there is no DRIP but your broker uses your dividend money to buy shares on the market for you without charging a commission.  This would only be if you have given them permission.

I take it as a warning sign if a company's share price is going down faster than the DRIP discount.  Maybe happening once or twice is OK but if it happens every time, then the investment should probably be reconsidered.