The returns investors receive from holding common stocks may be in two forms. They are ____.
A) cash dividend payments and capital gains
B) future earnings and treasury stock
C) stock splits and stock dividends
D) cash dividends and stock dividends

Question

Quizplus · Accepted Answer

The two forms of returns that investors receive from holding common stocks are cash dividend payments, which are periodic payments made by the company to its shareholders from its profits, and capital gains, which is the profit that is earned from selling the stock for a higher price than it was purchased for.

The Returns Investors Receive from Holding Common Stocks May Be