Explain the Difference Between Normative and Informational Social Influence

question 11

Essay

Explain the difference between normative and informational social influence.Who among a teen's peers might be most likely to exert each kind of influence,and why?

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Definitions:

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Dividend Policies

The policies and guidelines a company follows in deciding how much of its earnings it will pay out to shareholders as dividends.

Bird-In-The Hand

A theory suggesting that investors prefer dividends from a stock to potential capital gains because of the immediate certainty of receiving payouts.

Dividend Reinvestment Plans

Programs that allow shareholders to automatically reinvest their cash dividends into additional shares of the issuing company.