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Which of the following statements about stock investment is not correct? If you own a share of stock, you can receive cash by receiving the
Which of the following statements about stock investment is not correct?
If you own a share of stock, you can receive cash by receiving the dividends paid by the stock. It is the dividend yield. | ||
You can receive cash by selling your shares, either to another investor in the market or back to the company. It is the capital gain return. | ||
Your total return on the stock = dividend yield + capital gain return. | ||
Your capital gain return on a stock is always greater than the dividend yield of the stock. |
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