Trading on the equity is likely to be good financial strategy for stockholders of companies having no fixed earnings.
Given that the financial strategy is good for the stockholders of the company.
We are required to give the description about the companies whose the trading on the equity is likely to be good financial strategy for stockholders of companies.
We know that it is the choice of the companies to pay dividend or not but it is mandatory to pay interest on the debt taken by the company. So if companies's earning are fluctuating then the companies cannot take risk by taking debt and it is also beneficial for the stockholders because otherwise they will get less dividend as most of the earning will go in paying debt. So trading on the equity is likely to be a good financial strategy for stockholders of companies having no fixed earnings.
Hence trading on the equity is likely to be good financial strategy for stockholders of companies having no fixed earnings.
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