Question

1) When you invest in stock, what are you doing?

2) How do you make money from stocks?_
3) What options are available to investors with dividends?
4) What is a capital gain? What is a capital loss?
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Answer 1

Step-by-step explanation:

1) When we invest in stock it means we are investing in long term investment. It includes risk factor also.

2) We can make money from stocks by retaining them for a long period and selling them when their price rises.

3) dividends are paid out of distributable profits. Some companies provide dividends regularly which act as a regular source of income for investors.

4) Capital gain is the benefit obtained on selling a capital asset and if we face loss on selling the capital asset it results in capital loss. Capital assets are like stock, bonds, properties, etc.