Which one of the following tends to decrease the ability of a shareholder to create his or her own homemade dividend policy?
A) Low taxes on capital gains
B) Large holdings of shares
C) Dividend reinvestment plans
D) Low-cost equity purchases
E) High transaction fees

Question

Quizplus · Accepted Answer

High transaction fees tend to decrease the ability of a shareholder to create his or her own homemade dividend policy because they increase the cost of buying and selling shares to adjust the investment portfolio, making it more expensive to mimic the effects of a dividend policy chosen by the company.

Which One of the Following Tends to Decrease the Ability