Some companies pay their dividend in kind, that is, paying at below market cost and whether this can be applied to mutual fund stock. To think critically about: Whether the mutual funds invested in stocks can pay dividend in kind. Introduction: Investment in shares differs from the investment in mutual fund stocks. Dividends are a portion of earnings distributed to the shareholders of the company. The distribution of earnings can be in cash or in kind, when the mutual funds cannot pay the funds in cash.

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Chapter 14, Problem 5CTCR

Summary Introduction

Case summary:

Some companies pay their dividend in kind, that is, paying at below market cost and whether this can be applied to mutual fund stock.

To think critically about: Whether the mutual funds invested in stocks can pay dividend in kind.

Introduction:

Investment in shares differs from the investment in mutual fund stocks. Dividends are a portion of earnings distributed to the shareholders of the company. The distribution of earnings can be in cash or in kind, when the mutual funds cannot pay the funds in cash.

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Explain why long-term bonds are subject to greater interest rate risk than short-term bonds with references or practical examples.