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

Answer Details

A share is a financial instrument that entitles the holder to receive dividends and capital gains. A share represents a unit of ownership in a company and as the company earns profits, the holders of the shares are entitled to a portion of those profits in the form of dividends. When the company's stock price increases, the holder of the shares can sell their shares for a profit, which is referred to as a capital gain. A bond is a debt security, meaning the holder is lending money to the issuer (usually a corporation or government) and is entitled to receive periodic interest payments and the return of the bond's face value when it matures. A bill of exchange is a financial instrument that requires one party to pay a certain sum of money to another party on a specified date. A treasury bill is a short-term debt obligation issued by a government, with a maturity of less than one year. It is considered to be a low-risk investment as it is backed by the government.