Question

The observed empirical fact that stocks attract particular investors based on the firm's dividend policy and the resulting tax impact on investors is called the

Answer 1

Answer:

Clientele effect.

Explanation:

This can be seen to be a direct theory which explains that prices of stock of particular companies are seen to decrease or increase according to the companies policies. This effect also is seen to explains how these changes in market situations affect the price of a security and their policy in operation in many cases too. One of the places this effect is seen to do well is availably on the assumption that a lot of the company's shareholders are drawn to the stock of a company because of the company’s policy and when there is a change in policy, the shareholder drifts in their holdings causing price changes.