If a Retired Individual Lives on His or Her Investment

question 24

True/False

If a retired individual lives on his or her investment income,then it would make sense for this person to prefer stocks with high payouts so he or she could receive cash without going to the trouble and expense of selling stocks.On the other hand,it would make sense for an individual who would just reinvest any dividends received to prefer a low-payout company because that would save him or her taxes and brokerage costs.

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Definitions:

Charisma

A personal quality of compelling attractiveness or charm that can inspire devotion in others, often seen as an important factor in leadership.

Transformational Leadership

A leadership style that inspires and motivates followers to exceed their own interests for the good of the group or organization.

Elitist

Pertaining to or reflective of the belief that a society or system should be led by an elite group of individuals.

Anti-democratic

Referring to principles, actions, or ideologies that oppose democracy, which is a system of government where power is vested in the hands of the people, often through elected representatives.