Discuss the Two General Explanations for Why People Are Poor

question 51

Essay

Discuss the two general explanations for why people are poor.

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Definitions:

Investment Opportunities

Prospects or options available for investors to put their money into securities, assets, or projects expected to yield a return over time.

Dividend Policies

Dividend policies are guidelines a company follows to decide the size and pattern of cash dividends to its shareholders over time.

Stock Splits

A corporate action to increase the number of outstanding shares, thereby reducing the price per share, without changing the market cap.

Residual Dividend Policy

A strategy where dividends paid to shareholders are set as the remainder after all project and operation expenses and investments are covered.