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Name the Fallacy.
-You say that all actions are determined, but that is false, for I saw Fred playing basketball last night, and he didn't act very determined about winning.
Clientele Effect
The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.
Dividends
Payments made to shareholders out of a company's profits.
Steady Source
A consistent and reliable means of obtaining something, such as income or information.
Clientele Argument
A theory suggesting that companies attract investors whose preferences align with the company's policies regarding dividends, financing, and investment.
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