The Clientele Effect Is Concerned With

question 94

Multiple Choice

The clientele effect is concerned with:

• A) investor behaviour and attitudes towards dividends.
• B) the relationship between the stockbroker and his/her client.
• C) the stability of dividends.
• D) the effect of earnings on the client.

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Definitions:

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability of the economy or firm to adjust.

Long Run

A time frame in economics where all factors of production can be varied, allowing for full adjustment to changes.

Marginal Revenue

The enhanced earnings a business receives by selling one more unit of its goods or services.

Marginal Cost

The swell in overall financial outlay resulting from the crafting of an extra unit of a good or service.