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By the way, when a firm reaches a maturity level, it starts to distribute the earnings back to the shareholders in the form of dividends.
By the way, when a firm reaches a maturity level, it starts to distribute the earnings back to the shareholders in the form of dividends. Such a firm is called Cash Cow. Could you elaborate why some call a firm with such characteristics a Cash Cow? What happens to its stock price or capital gain if one buys such as a stock?
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