Which one of these parties is most apt to prefer a stock with a low-dividend payout policy?
A) Financial institutional investors
B) Growth-seeking investors
C) Retired individuals
D)Endowment funds

Question

Quizplus · Accepted Answer

Growth-seeking investors typically prefer companies that reinvest their earnings into the business rather than paying out dividends, as they believe this leads to greater long-term growth potential. Therefore, they tend to prefer stocks with a low-dividend payout policy.

Which One of These Parties Is Most Apt to Prefer