Question

The "bird-in-the-hand" dividend theory suggests that

Answer 1

Answer:

The bird in hand is a theory that postulates that investors prefer dividends from stock to potential capital gains because of the inherent uncertainty associated with capital gains. Based on the adage, "a bird in the hand is worth two in the bush," the bird-in-hand theory states that investors prefer the certainty of dividend payments to the possibility of substantially higher future capital gains.