The ability of shareholders to undo the dividend policy of the firm and create an alternative dividend payment policy via reinvesting dividends or selling shares of stock is called (a):

Question

Quizplus · Accepted Answer

The concept described is known as "homemade dividends," which allows investors to tailor their income streams by either reinvesting dividends for more shares or selling a portion of their shares to generate cash, effectively creating a personalized dividend policy.

The Ability of Shareholders to Undo the Dividend Policy of the Firm