> Dividend puzzle It's not a puzzle. When investors buy a stock that pays a dividend, they're looking mostly at yield. Dividend-yielding equities compete wit

> Dividend puzzle It's not a puzzle. When investors buy a stock that pays a dividend, they're looking mostly at yield. Dividend-yielding equities compete with fixed-income securities (bonds), not speculative equities. So dividend yielding stocks get bought up until the point where the yield is more or less the same as fixed-income securities. > Home bias in trade puzzle: It's not a mystery; most people are smart enough to know that when money stays in the community, everyone benefits. Even if the average consumer doesn't know this, enough experts do to push 'buy local' schemes. This is all else being equal of course.