pandabear5200 pandabear5200

29-10-2019
Business

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The common stock of Dayton Dry Goods has historically had a low dividend yield that is expected to continue. As a result, the majority of its shareholders are individuals who prefer capital gains over cash dividends for tax reasons. The fact that most of these shareholders have similar characteristics is referred to by which one of the following terms?A) clientele B) market reaction C) information content D) distribution E) investor

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Kristiania Kristiania

30-10-2019

Answer:

A) clientele

Explanation:

Clientele effect -

This effect helps to determine the movement in the stock price of the company , depending on the goals and demands of the investors , is known as clientele effect .

The assumption of this effect is , the investors are attracted to any other company policies and as the policy of the company changes , the stocks would be adjusted accordingly , and due to these adjustments , there would be changes in the stock prices .

Hence , from the question , the correct term fro the given information is clientele effect .

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