This might be an obvious question, but if I hold a company that pays dividends in a brokerage like Questrade, and choose the dividend reinvestment option, where does the payout go until I have enough for another share? Allow me to expound a bit:
Clearly, when one purchases the stock in one's own name from the Transfer Agent, then the dividends buy fractional shares. I have a couple of real DRiP/SPPs set up. But what about stocks in a brokerage- QT for example offers a synthetic drip. Say I hold fewer than the number of shares required to purchase another full share when dividends are distributed; let's say when Apple's first dividend is paid, but the number of my holdings don't earn me the $500-$600 to get another share. What happens to that $100 (for example) or so in dividends- I've registered for the DRiP, so is it deposited into my account as cash, or will it accumulate in the brokerage's records until I have enough for a share?