The observed empirical fact that stocks attract particular investors based on the firm's dividend policy and the resulting tax impact on investors is called the:

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Quizplus · Accepted Answer

The clientele effect refers to the phenomenon where stocks attract particular investors based on the firm's dividend policy and the resulting tax implications for investors. Different investors have different preferences for dividend policies due to their tax situations, leading them to gravitate towards companies whose dividend policies match their preferences.

The Observed Empirical Fact That Stocks Attract Particular Investors Based