If the dividend of a stock decreases, then according to the gordon growth model, holding everything else constant, the price of the stock will decrease.
A security that denotes ownership of a portion of the issuing company is referred to as a stock, also known as equity. Shares, which are units of stock, entitle its owners to a percentage of the company's assets and income based on how many shares they possess.
The cornerstone of many individual investors' portfolios, stocks are mostly bought and sold on stock exchanges. Government rules aimed at shielding investors from dishonest tactics must be followed when trading stocks.
Corporations issue stock to obtain money to run their businesses, and a shareholder who owns stock may be entitled to a portion of the company's assets and earnings.
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