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Investments glossary

Dividend Irrelevance Theory

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Quotes of the day:

I\'m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal.

— Milton Friedman

The dividend irrelevance theory is the theory that investors do not need to concern themselves with a company’s dividend policy since they have the option to sell a portion of their portfolio of equities if they want cash.


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