The Total Return on a Share of Stock Refers to the Dividend

question 48

True/False

The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold.

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Definitions:

Equity Securities

Financial instruments indicating ownership in a company, such as stocks, which may offer dividends and voting rights.

Strategic Investments

Strategic Investments are long-term investments made by a company in other companies or assets to further its business objectives and gain competitive advantages.

Trading Investments

Securities that a company buys and holds primarily for the purpose of selling them in the near term to generate income.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company and its subsidiaries, presenting it as if the group were a single entity.