What are the three ways that individuals can make money by buying ordinary share?

Question

Quizplus · Accepted Answer

Buying ordinary shares can lead to three potential ways of making money: an increase in the value of the stock, dividend payments, and stock splits. Option A accurately lists these three ways. Option B incorrectly includes "stock exchanges" as a way to make money, when in reality, buying and selling shares on an exchange does not inherently generate profit. Option C erroneously suggests that converting shares to bonds is a way to make money, when it simply changes the form of ownership. Option D mentions "stock buys" without further explanation, and this is not a commonly recognized term for making money through ordinary shares. Finally, option E suggests "stock conversions" as a way to make money, but this is a vague term that does not clearly describe a potential source of profit.

What Are the Three Ways That Individuals Can Make Money