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In an economy with no taxes or other imperfections, how can an investor, who owns 1,000 non-dividend paying shares priced at $50 each, create 20%
"In an economy with no taxes or other imperfections, how can an investor, who owns 1,000 non-dividend paying shares priced at $50 each, create 20% homemade dividend?"
Sell 200 shares and retain 800 shares priced at $50. | ||
Sell 100 shares and retain 900 shares priced at $48. | ||
Sell 100 shares and retain 900 shares priced at $52. | ||
Homemade dividends can be created only in an economy with imperfections. |
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