The clientele effect states that investors fall into various groups because of differences in their preferences for which one of the following?
A)Share price levels
B)Risk level
C)Short-term versus long-term investments
D)Rates of return
E)Dividends

Question

Quizplus · Accepted Answer

The clientele effect suggests that investors are attracted to companies whose dividend policies match their preferences, meaning they prefer certain dividend payout levels.

The Clientele Effect States That Investors Fall into Various Groups