One of the primary reasons for investing in equity securities includes:

Question

Quizplus · Accepted Answer

The appreciation in the value of the stock is one of the primary reasons for investing in equity securities. As the company grows and becomes more profitable, the value of its stock generally increases, leading to potential capital gains for the investor. Acquiring debt of competing companies (A) and earning interest revenue (C) are more relevant to investing in debt securities. Deducting dividend payments for tax purposes (D) may be a benefit of investing in equity securities, but it is not a primary reason for doing so.

One of the Primary Reasons for Investing in Equity Securities