Question

1. If the price of the share grows as the company grows, how does buying 25 points

shares in a company benefit an investor?
a. An investor will be able to sell these shares for a lower price and make a profit.
b. An investor will be able to sell these shares for a higher price and make a profit.
c. An investor will be able to enjoy free services from the company they bought shares
from.
d. An investor will be able to put the company on their resume.

Answer 1

Answer: b. An investor will be able to sell these shares for a higher price and make a profit.

Step-by-step explanation:

Capital gains are a way to earn a return from owning stock in a company. They involve buying stock at a certain price and then selling the stock when the price increases. The difference between the selling and the buying prices is your capital gain.

This is the benefit to the investor here. If they buy a stock that grows with the company. They will be able to sell at a higher price eventually such that they will make a capital gain.