At the annual meeting shareholders voted for reinvesting the company's profit without paying dividents. What are...

70.2K

Verified Solution

Question

Finance

At the annual meeting shareholders voted for reinvesting thecompany's profit without paying dividents. What are the causes/reasons & expected effects of buying common shares ? Writethree causes/reasons and three effects.

Answer & Explanation Solved by verified expert
4.0 Ratings (489 Votes)
The three reasons for buying the stock The main reason for buying the stock would the capital gain when the price appreciates in value and investor would gain significantly Normally the dividend is taxed as an ordinary income    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

At the annual meeting shareholders voted for reinvesting thecompany's profit without paying dividents. What are the causes/reasons & expected effects of buying common shares ? Writethree causes/reasons and three effects.

Other questions asked by students