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11 July, 17:54

For investors in the stock market, dividends from stocks are fixed and guaranteed, while capital gains are variable and not guaranteed.

A. True

B. False

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Answers (1)
  1. 11 July, 18:18
    0
    Answer: False

    Explanation: In simple words, stock refers to the share in the ownership of the company and dividends is the return that the shareholders gets for investing in the company and bearing the risk.

    The dividends of a shareholder is not certain and depends on the amount of profit that a company has earned in a given period of time. Only debt and preference shareholders gets a fixed rate of return on their investment.

    Capital gains of a stock is also uncertain as the price of the share depend on various factors that keeps fluctuating due to market forces.

    Hence the given statement is false.
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