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Sam has a real clunker of a car that has stalled on him numerous times.He tells his friends that he is getting a brand new car, but then he checks out the prices and realizes that he cannot afford a new car.When his friends ask him when he is getting the new car, he responds that he does not know what he was thinking.He could never give up this car."It's a classic." Sam is using the defense mechanism known as
Rate of Return
The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.
Dividend Income Distributions
Payments made by a corporation to its shareholders, typically derived from the company's earnings.
Capital Gains
Capital gains are the profit earned from the sale of an asset, such as stock or real estate, which has increased in value over the holding period.
Rate of Return
The increase or decrease in the value of an investment during a predetermined period, represented as a percentage of the investment's starting cost.
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