If a corporation stops paying dividends, its stock price will fall, .

Question

Quizplus · Accepted Answer

The stock price of a corporation can be influenced by many factors, and while stopping dividend payments might lead to a decrease in stock price due to perceived financial troubles or a shift in investment strategy, it is not a certainty. Stock prices can remain stable or even increase if investors believe the company is reinvesting earnings in profitable ventures that will lead to greater long-term growth.

If a Corporation Stops Paying Dividends, Its Stock Price Will