Investors can make money with stocks primarily through two methods:

1. **Capital Gains**: This occurs when an investor sells a stock for a higher price than the purchase price. The difference between the selling price and the purchase price is the capital gain. For example, if an investor buys a stock at $50 and later sells it for $70, the capital gain is $20 per share.

2. **Dividends**: Companies may distribute a portion of their earnings to shareholders in the form of dividends. These are typically paid out on a regular basis (e.g., quarterly) and provide a steady income stream to investors. Dividends can be in the form of cash payments or additional shares of stock.

Both methods can contribute to an investor's overall return on investment, and the choice between them often depends on the investor's financial goals and market conditions.

Question

Investors can make money with stocks primarily through two methods:

1. **Capital Gains**: This occurs when an investor sells a stock for a higher price than the purchase price. The difference between the selling price and the purchase price is the capital gain. For example, if an investor buys a stock at $50 and later sells it for $70, the capital gain is $20 per share.

2. **Dividends**: Companies may distribute a portion of their earnings to shareholders in the form of dividends. These are typically paid out on a regular basis (e.g., quarterly) and provide a steady income stream to investors. Dividends can be in the form of cash payments or additional shares of stock.

Both methods can contribute to an investor's overall return on investment, and the choice between them often depends on the investor's financial goals and market conditions.

Knowee AI · Accepted Answer

Investors can make money with stocks primarily through two methods:

1. **Capital Gains**: This occurs when an investor sells a stock for a higher price than the purchase price. The difference between the selling price and the purchase price is the capital gain. For example, if an investor buys a stock at $50 and later sells it for $70, the capital gain is $20 per share.

2. **Dividends**: Companies may distribute a portion of their earnings to shareholders in the form of dividends. These are typically paid out on a regular basis (e.g., quarterly) and provide a steady income stream to investors. Dividends can be in the form of cash payments or additional shares of stock.

Both methods can contribute to an investor's overall return on investment, and the choice between them often depends on the investor's financial goals and market conditions.

Describe the two ways that investors make money with stock.

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Describe the two ways that investors make money with stock.

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