Answer:
Dividend declare has no impact on the SMA. RR would respond the following way.
Explanation:
SMA is known as “Special Memorandum Account”. It is simply a line of credit, neither cash nor equity. It is created with the market value of the securities increase in the value. The purpose of SMA is to maintain the buying power that is provided by unrealized gains towards the subsequent purchases. SMA is an appropriate way to maintain stable account value and minimize unnecessary accounts funding.
SMA increases with the increase in the value of the security, but does not decrease when the security falls in the value.
SMA is increased by the transactions such as cash deposits, interest income or dividend received or security sales. Dividend declared by the company creates a positive sentiments in the minds of investors. However, it will not create any impact on the SMA account, until it is actually received.
Answer:
B. corporate strategy
Explanation:
Corporate strategy -
According to this strategy , the approach adapted for any decision making process , so as to get the maximum advantage to the business , is referred to as corporate strategy .
During this strategy , the company need to look for various business or company in order to make the best decision to obtain maximum profit .
Hence, from the given statement of the question ,
The correct option is B. corporate strategy .
