Voting Strictly Based on Perceived Economic Conditions and Holding Those

question 8

Multiple Choice

Voting strictly based on perceived economic conditions and holding those incumbents responsible is ____________________.

• A) retrospective voting
• B) prospective voting
• C) group preference voting
• D) responsible party voting

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Definitions:

Dividend Policy

A strategy a company uses to decide how much it will pay out to shareholders in dividends.

Alternate Dividend Policy

A strategy employed by a company to distribute earnings to shareholders through dividends that may vary in amount and frequency depending on the company's earnings, investment opportunities, and capital needs.

Stock Repurchase

A financial transaction in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

P/E Ratio

The price-to-earnings ratio, a valuation metric for stocks calculated by dividing the market value per share by its earnings per share.