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The Clientele Effect Is the Effect of Investor Preferences for Dividends

question 56

True/False

The clientele effect is the effect of investor preferences for dividends or capital gains.

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Definitions:

Incentive System

A structured plan designed to motivate and encourage specific behaviors or actions among a group of people or employees.

Profit Sharing

A form of compensation whereby a percentage of company profits is distributed to the employees whose work helped generate them.

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