An investor's preference for dividends rather than capital gains is influenced by their level of income.

Question

Quizplus · Accepted Answer

Investors with higher levels of income may prefer dividends over capital gains because they may be more interested in receiving a steady income stream rather than waiting for a potential increase in stock value. Additionally, they may be subject to higher tax rates on capital gains, making dividends a more tax-efficient option.

An Investor's Preference for Dividends Rather Than Capital Gains Is