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 about stocks and cryptocurrency ownership with this quiz. Learn about the basics of owning shares, capital gains, dividends, voting rights, and the unique characteristics of cryptocurrency as a digital asset.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
