Historical Evidence Shows That Over the Last Few Decades a Larger

question 56

Multiple Choice

Historical evidence shows that over the last few decades a larger proportion of firms have used ________ for payouts.

• A) repurchases
• B) dividends
• C) stock reverse splits
• D) stock splits

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Definitions:

Recommendations

Advice given by analysts or experts on buying, holding, or selling stocks or other securities.

Liquidity

The ease with which an asset can be quickly bought or sold in the market without affecting its price.

Small-Firm Effect

The observed phenomenon that, on average, smaller firms have historically provided higher risk-adjusted returns than larger firms.

Book-To-Market Effect

The tendency for securities with high book-to-market ratios to outperform those with low ratios.