[moneydance] Capital Gains

[Steve Lessard]

I recently learned that in investment accounts there is a difference  
between recording dividend income as a Div transaction and then  
recording a purchase of shares with that dividend money as a Buy  
transaction vs. recording one DivReinv transaction.  I guess its  
supposed to adjust the cost basis.

So my questions...

Is it true that there is a difference between Div / Buy and DivReinv?

Does it also apply to capital gains paid out at the end of the year  
from mutual funds?