Which one of the following statements about common stock is true?
A) Common stock can provide attractive capital appreciation opportunities.
B) Dividends generally provide the greatest rate of return on common stocks.
C) Common stocks generally have a negative rate of return over a ten-year period.
D) The DJIA is the best indicator of the overall performance of common stocks.

Question

Quizplus · Accepted Answer

Common stock can offer the potential for capital appreciation, meaning the value of the stock can increase over time, providing investors with the opportunity to sell their shares for more than they paid. This is a key attraction of investing in common stocks.

Which One of the Following Statements About Common Stock Is