Investors' income level is used to determine their preference for dividends rather than capital gains.

Question

Quizplus · Accepted Answer

This is generally true as investors with higher income levels often prefer dividends as a source of regular income, while those with lower income levels may prefer capital gains as a means of growing their investment portfolio. However, it is important to note that this is not a hard and fast rule and individual preferences may vary.

Investors' Income Level Is Used to Determine Their Preference for Dividends