The main factors that determine the value of a stock on the stock Exchange are dividend and

Assessment: JAMB UTME - Commerce - 2001 Subject: Commerce

Question 1 Report

The main factors that determine the value of a stock on the stock Exchange are dividend and
Answer Details
When you buy a share of stock, you essentially become a part-owner of the company. As a part-owner, you are entitled to receive a share of the company's profits in the form of dividends. The value of a stock on the stock exchange is largely determined by the dividends the company pays out to its shareholders. Another important factor that influences the value of a stock is capital gain, which is the difference between the price you paid for the stock and the price you sell it for. Capital appreciation, which refers to the increase in the value of a stock over time, is also an important factor that affects its value. Warrant payment, on the other hand, is a separate financial instrument that gives the holder the right to buy or sell a stock at a certain price and time, and does not directly affect the value of the stock itself.

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