Managers try to avoid reducing their stock's dividend.

Name: Managers try to avoid reducing their stock's dividend.
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Question

Quizplus · Accepted Answer

Managers generally try to maintain or increase their company's stock dividend as a way to reward shareholders and maintain investor confidence. A reduction in dividend can often be seen as a negative signal by investors, potentially leading to a decline in the stock's price.

Managers Try to Avoid Reducing Their Stock's Dividend