Where Do Birds Invest Their Money? (Exposing The Truth)

 Where Do Birds Invest Their Money?

You might be wondering where does birds invest their money. In this article you will know where and how birds invest their money.

Are you thinking of  literal birds? If so take off your mind from that and read on.

What Does "Bird in Hand" Mean?

The bird in hand argument states that investors prefer dividends from stock investments over prospective capital gains since capital gains are inherently unpredictable. The bird-in-hand hypothesis asserts that investors prefer the certainty of dividend payments over the chance of much larger future capital gains, based on the saying "a bird in the hand is worth two in the bush."

Bird in Hand Explained

The bird-in-hand idea was created by Myron Gordon and John Lintner as a counterbalance to the Modigliani-Miller dividend irrelevance argument. According to the dividend irrelevance argument, investors don't care whether their stock returns come from dividends or capital gains. According to the bird-in-hand argument, investors seek for equities with significant dividend distributions, which attract a higher market price.

In a nutshell: Birds invest their money in the stock market. 

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