Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the difference between a capital gain and a dividend?
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. (correct)
- 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 creditors.
- 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 board of directors.
- 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 employees.
Flashcards are hidden until you start studying
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
