The ability of shareholders to undo the dividend policy of the firm and create an alternative dividend payment policy via reinvesting dividends or selling shares of stock is called a:

Question

Quizplus · Accepted Answer

The ability of shareholders to create their own alternative dividend payment policy via reinvesting dividends or selling shares of stock is called a homemade dividend policy. This option allows shareholders to customize their own dividend preferences instead of relying solely on the firm's dividend policy. The other answer choices (A, B, D, and E) are not relevant to this concept.

The Ability of Shareholders to Undo the Dividend Policy of the Firm