The concept of homemade dividends requires the following:
I.No taxes, transactions costs, or other market imperfections.
II.Management cooperation to implement.
III.The actions of individuals through their own behaviour

Question

Quizplus · Accepted Answer

The concept of homemade dividends assumes no taxes, transactions costs or other market imperfections, and also relies on the actions of individuals through their own behavior. However, management cooperation is not necessary for implementing homemade dividends.

The Concept of Homemade Dividends Requires the Following