Pick Any Three of the Segmentation Variables Listed in the Chapter

question 33

Essay

Pick any three of the segmentation variables listed in the chapter, describe the variables and give examples of each.

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Definitions:

Stock Splits

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price of each share, aiming to make shares more affordable.

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating how much tax will be paid on any additional income earned.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, usually exempt from federal taxes and, in some cases, state and local taxes.

Corporate Bond

A type of debt security issued by a corporation to raise funds from investors, who are owed repayment of the loan plus interest.