ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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getting dividends
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selling the stock at a higher value
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stock splits
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selling the stock at a lower value
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Detailed explanation-1: -Income from dividends Many companies pay cash to shareholders in the form of a dividend. Shareholders receive a dividend per each share they own, usually paid once or twice a year.
Detailed explanation-2: -Capital growth and dividend payments are the two ways you can make money as a shareholder. There are two ways you can make money as a shareholder. The first way is through capital growth. This occurs if the value of the shares you own increases between the time you buy and sell them.
Detailed explanation-3: -In short, one common way to make money in stocks is by adopting a buy-and-hold strategy, where you hold stocks or other securities for a long time instead of engaging in frequent buying and selling (a.k.a. trading).
Detailed explanation-4: -Capital gains. Dividends. The magic of compound interest.