Stocks and Cryptocurrency Ownership Quiz
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Questions and Answers

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.
  • 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.

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    Description

    Test your knowledge about stocks and cryptocurrency ownership with this quiz. Learn about the concept of shares, dividends, voting rights, capital gains, and the unique nature of cryptocurrencies as digital assets.

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