Examlex
Which of the following is a legal contract that outlines the precise terms between the issuer and the bondholder?
Residual Dividend Model
A strategy for determining dividend payments based on the residual or leftover earnings after all operational and expansion costs have been met.
Clientele Effect
A theory suggesting that changes in dividend policy will attract different types of investors based on their personal preferences for dividend payouts.
Stock Repurchases
This is a process where a company buys back its own shares from the marketplace, potentially reducing the total number of outstanding shares and often seen as a way to return value to shareholders.
Capital Gains Taxes
Taxes on the profit made from selling an asset for more than its purchase price.
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