The Clientele Effect Suggests That a Firm's Dividend Policy Will

question 100

True/False

The clientele effect suggests that a firm's dividend policy will be affected by the needs of the shareholders.

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Definitions:

Federal Laws

Laws passed by the national government of a country, applicable across the entire country, as opposed to state or local laws which only have local jurisdiction.

Federal Regulation

Rules prescribed by federal agencies designed to govern business practices and protect public welfare.

Preempted

The action of precluding or taking precedence over something, often referring to federal laws that take precedence over state laws in the same domain.

State Law

Legislation that is enacted and enforced by a state's legislative body, governing matters not reserved to the federal government by the Constitution.