1 Questions
What is the difference between a capital gain and a dividend?
A capital gain is the difference between what you spend for the asset and what you get when you sell it, while a dividend is a payment from a company to its shareholders.
Study Notes
- Stocks are the ownership stakes of a publicly traded corporation.
- Each share of stock you purchase gives you a percentage stake in the company.
- An investor can profit by selling their stock to other investors.
- A capital gain is the difference between what you spend for the asset and what you get when you sell it.
- Besides that, the advantages of owning shares depend entirely on the company.
- Stocks can also gain value by providing dividends to their shareholders and may include voting rights.
- A cryptocurrency is a digital asset that exists solely on the internet, which means it doesn't have a physical component and only exists as a record in an online ledger that tracks ownership.
- A unit of cryptocurrency is called a token, much as a unit of stock is called a share.
Test your knowledge of stocks and cryptocurrency ownership with this quiz. From understanding capital gains to the advantages of owning shares, this quiz covers the basics of stock ownership and compares it to the unique nature of cryptocurrency as a digital asset.
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