Indy owns 100 shares of stock in Pet Mart Corporation that he purchased for $20 per share. Every year he has received, from company proﬁts, $1 for each share he owns. If Indy holds his shares for
ﬁve years, he

Question

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Indy will receive $1 per share every year for five years, totaling $5 per share. Since he owns 100 shares, he will receive $500 in dividends over the five-year period. He may or may not earn a capital gain depending on whether the stock price increases or decreases, but this is not guaranteed. He will not receive interest since he is not investing in a bond or savings account. Selling the stock may or may not be the best choice depending on the current market conditions and Indy's investment goals, so this cannot be determined from the given information.

Indy Owns 100 Shares of Stock in Pet Mart Corporation