julia buys a share of stock through her brokerage firm. what are the two ways that julia could make money from owning this stock?

julia buys a share of stock through her brokerage firm. what are the two ways that julia could make money from owning this stock?

14 hours ago 3
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Julia could make money from owning a share of stock in two primary ways:

  • Capital Gains : This occurs when the price of the stock increases after Julia buys it. If she sells the stock at a higher price than what she paid, the difference is her profit, known as a capital gain
  • Dividends : Some companies distribute a portion of their profits to shareholders as dividends. Julia could receive these dividend payments regularly while owning the stock, providing a source of income

These two methods-capital gains from selling the stock at a higher price and dividends from the company’s profit sharing-are the main ways investors earn money from stocks.

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