Signaling Approach (On Dividend Policy): Notion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach.

 

Related Words

Signaling Approach (On Dividend Policy): Notion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value o . . . View Full Definition

Market Approach: A method of pricing single-family rental homes and condos using comparable market data. When pricing multiple unit rental properties, the income approach is probably better.

Liquidating Dividend: Payment by a firm to its owners from capital rather than from earnings.

Interim Dividend: The declaration and payment of a dividend prior to annual earnings determination.

Market-Data Approach: Estimating a propertys value based on a comparison of the property with similar properties in the same locale that have sold recently. Also known as the direct sales comparison approach.

Net Income Approach: A method of pricing multiple unit rental properties where the desire to buy is driven by the propertys ability to generate cash flow and profit. Most often used to price rental properties of . . . View Full Definition

Participating Dividend: Dividend received from ownership of participating preferred stock.

Optional Dividend: A dividends that the shareholder can elect to receive either in cash or in stock.

Optimization Approach To Indexing: An approach to indexing that seeks to optimize some objective, such as to maximize the portfolio yield, to maximize convexity, or to maximize expected total returns.

Omitted Dividend: A dividend that was scheduled to be declared, but that is not voted by the board of directors probably because the company is experiencing financial difficulties.