Ownership of stock offers the possibility, but not the guarantee, of which two types of financial returns?
A) dividends and capital rate of return
B) capital gains and dividends
C) capital gains and interest
D) dividends and interest

Question

Quizplus · Accepted Answer

Ownership of stock offers the possibility of two types of financial returns: capital gains and dividends. Capital gains refer to the increase in the stock's market value over time, while dividends are payments made by the company to its shareholders. Together, these two types of returns can provide investors with income from their investment in the stock. However, it is important to note that there is no guarantee of either of these returns and the value of the stock can also decrease, resulting in a loss for the investor.

Ownership of Stock Offers the Possibility, but Not the Guarantee