The financial instrument that entitles the holder to receive dividend and capital gains is a?

Assessment: JAMB UTME - Commerce - 2009 Subject: Commerce

Question 1 Report

The financial instrument that entitles the holder to receive dividend and capital gains is a?
Answer Details
A financial instrument that entitles the holder to receive both dividend and capital gains is a share. When you buy a share of a company, you become a part-owner of the company and are entitled to a portion of its profits. The company may distribute these profits to its shareholders in the form of dividends or reinvest them to grow the business, increasing the value of the company and the share price. Thus, a share is a way for investors to participate in the success and profitability of a company.
Read lesson note on Stock Exchange (JAMB)
Read lesson note on Occupation (WAEC)
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