Question: What is the difference between a dividend and a capital gain? Option A Dividends are paid out in cash, while capital gains are realized when

What is the difference between a dividend and a capital gain?
Option A
Dividends are paid out in cash, while capital gains are realized when a stock is sold for a profit.
Option B
Capital gains are paid out in cash, while dividends are realized when a stock is sold for a profit.
Option C
Dividends are guaranteed payments to shareholders, while capital gains are the profit from selling a stock for more than the purchase price.
Option D
None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!