A One-Time Payment to Shareholders That Is Much Larger Than

question 31

Multiple Choice

A one-time payment to shareholders that is much larger than a regular dividend is often referred to as a ________ dividend.

• A)taxable
• B)divesting
• C)special
• D)ex-day

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Definitions:

Sector Rotation

An investment strategy that entails shifting the portfolio into industry sectors that are forecast to outperform others based on macroeconomic forecasts.

Portfolio

An assortment of financial assets encompassing shares, fixed income securities, raw materials, liquid cash, and near-cash items, along with inclusive of pooled investment vehicles like closed-end funds and ETFs.

Industry

An industry is a group of companies that are related based on their primary business activities.

Local Currency Return

The return on an investment denominated in the currency of the country where the investment is made.