Financial Management - Financial Management Section 3
3. What are home-made dividends and why would investors 'make' them?
- A
Home-made dividends represent sales of stock by relatively impatient investors.
- B
Home-made dividends represent purchases of stock by relatively impatient investors.
- C
Home-made dividends represent sales of stock by relatively patient investors.
- D
Home-made dividends represent purchases of stock by relatively patient investors.
| List-I (Form of dividend) | List-II (Feature) |
| (A) Cash dividend | 1. Liquidity |
| (B) Stock dividend | 2. Bonus Share |
| (C) Bond dividend | 3. Promissory Note |
| (D) Property dividend | 4. Securities |
| 5. Between two Financial Year |
| List-I (Functions of Financial Management) | List-II (Elements) |
| (A) Cost of Control | 1. Reduction in Price |
| (B) Managing Assets | 2. Cost Increase |
| (C) Raising of Funds | 3. Issue of Capital |
| (D) Forecasting Cash flows | 4. Cash Mobility |
| 5. Forecasting |
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