Stock Prices React to Dividend Announcements Because the Amount of the Dividend

question 50

True/False

Stock prices react to dividend announcements because the amount of the dividend sends a signal to investors about management's view of the company's prospects.

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Definitions:

Large Businesses

Corporations or enterprises that operate on a vast scale, often with extensive resources, employees, and market reach.

Small Ones

Refers to items, entities, or units that are lesser in size, quantity, or significance.

Maslow's Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy, from basic physical needs to complex self-fulfillment needs.

Psychological Needs

Fundamental human requirements such as love, esteem, belonging, and self-actualization that are essential for mental health and well-being.