Question

Investors, who purchase common stock, can make money from A) Interest and capital gains B) Dividends and dollar depreciation of stock value C) Royalties and stock splits D) Dividends and dollar appreciation of stock value

Answer 1

Investors can make money from dividends and capital gains when purchasing common stock.

Step-by-step explanation:

When investors purchase common stock, they can make money from dividends and capital gains. Dividends are direct payments made by the company to shareholders as a share of profits. Capital gains, on the other hand, are achieved when the stock is sold for a higher price than what was initially paid. Both forms of income contribute to the potential returns from owning stock.

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