A stock investor may expect returns in the form of
A) present and future values.
B) interest and dividends.
C) interest and capital gains.
D) dividends and capital gains.

Question

Quizplus · Accepted Answer

Stock investors can expect returns in the form of dividends and capital gains. Dividends are payments made out of a company's earnings to its shareholders, while capital gains are profits made from selling a stock at a higher price than it was purchased for. Interest and present/future values are typically associated with bond investments, while interest and capital gains are associated with stock investments.

A Stock Investor May Expect Returns in the Form of