Final answer:
A purchaser of stock from a market-maker will pay a commission, which is a fee for the service of executing the trade. Investors seek returns either via dividends or capital gains - the profit made from buying low and selling high.
Step-by-step explanation:
A purchaser of stock from a market-maker can expect to pay a commission. When a firm issues stock, it is acknowledging that investors who provide financial capital are doing so with the expectation of earning a return on their investment. This return can manifest in the form of dividends, which are direct payments to shareholders, or through capital gains, which occur when the stock value increases from the purchase price to the selling price.
For example, if an investor buys stock at a low price and later sells it at a higher price, the profit realized is then referred to as a capital gain. Moreover, when transacting stocks with the assistance of a stock company or a broker, there are typically transactional fees involved, which usually includes the commission. Hence, understanding these additional costs is crucial for investors to calculate their actual profits from stock investments.