Receiving dividends is the only way in which stockholders can earn a return on their investment in a corporation.

Question

Quizplus · Accepted Answer

While receiving dividends is a common way for stockholders to earn a return on their investment, it is not the only way. Stockholders can also earn a return through an increase in the stock's price, known as capital appreciation. Additionally, some corporations may offer stock buybacks, where they repurchase their own shares from shareholders at a premium, providing a return on investment without the need for dividends.

Receiving Dividends Is the Only Way in Which Stockholders Can