If a firm were to unexpectedly omit payment of its quarterly dividend, that firm's share price would probably drop.

Question

Quizplus · Accepted Answer

Shareholders often expect to receive regular dividend payments as a return on their investment. If a firm suddenly stops paying its dividend, it may be seen as a negative signal about the company's financial health and future prospects, leading to a decrease in the demand for its shares and a drop in the share price.

If a Firm Were to Unexpectedly Omit Payment of Its