Answered

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stockbroke
2. Are owners of common stock generally more interested in dividends
or capital gains? Why?

Sagot :

GinnyAnswer

Final answer:

Owners of common stock are generally more interested in capital gains than dividends, as future profits play a crucial role in stock value.


Explanation:

Owners of common stock are generally more interested in capital gains than dividends. Capital gains refer to selling the stock for a higher price than purchased, leading to a profit. Dividends are payments made by the company to shareholders out of its profits.

Shareholders often prefer capital gains as they reflect the potential for the stock's value to increase over time. However, dividends also play a role in providing a steady income stream to investors.

Ultimately, the expected level of future profits influences the value of the stock, impacting shareholders' decisions regarding dividends and capital gains.


Learn more about stock ownership and profit distribution here:

https://brainly.com/question/36814248


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