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

Question

Quizplus · Accepted Answer

Homemade dividend refers to the strategy where an investor sells a portion of their portfolio to create cash flow, essentially creating a personalized dividend policy. This allows investors to tailor the timing and amount of cash flow to their specific needs, independent of the company's dividend policy.

Homemade Dividend Refers to the Process by Which an Investor