When shareholders act on their own to alter a corporation's dividend policy by means of buying and selling on their own account they are creating _________.

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When shareholders act on their own to alter a corporation's dividend policy by buying and selling shares on their own account, they are creating what is known as a "homemade dividend." This concept is based on the idea that investors can simulate the effect of different dividend policies by adjusting their portfolio, selling shares if they want cash (mimicking a higher dividend), or buying more shares if they prefer reinvestment of profits (mimicking reinvestment of dividends into the business).

When Shareholders Act on Their Own to Alter a Corporation's