Which of these investors earn returns from receiving dividends and from stock price appreciation?

Question

Quizplus · Accepted Answer

Stockholders earn returns from both receiving dividends (if the company distributes dividends) and from stock price appreciation, which is when the stock price increases and they can sell their shares at a higher price than what they purchased them for. Bondholders receive returns in the form of interest payments but do not participate in stock price appreciation as they do not own shares in the company. Investment bankers and managers do not typically earn returns in this way as part of their job roles.

Which of These Investors Earn Returns from Receiving Dividends and from Stock