'Homemade dividend' refers to the process by which an investor
A)can take on more debt.
B)reinvests dividend payments.
C)can sell shares to create a dividend policy to suit his preferences.
D)chooses between equity and debt.

Question

Quizplus · Accepted Answer

A homemade dividend refers to the process where an investor sells a portion of their portfolio to create cash flow, effectively creating a personalized dividend policy. This allows investors to generate cash as needed without relying on the company's dividend policy.

'Homemade Dividend' Refers to the Process by Which an Investor