Receiving Dividends Is the Only Way in Which Stockholders Can

question 139

True/False

Receiving dividends is the only way in which stockholders can earn a return on their investment in a corporation.

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Definitions:

Premium

An amount paid for an insurance policy or an amount above the nominal value of a security or investment.

Market Rates

The prevailing interest or exchange rates in the financial markets at any given time.

Premium

The amount paid for an insurance policy or an addition to the standard cost or value of something.

Discount

A deduction from the usual cost of something, or the process of determining the present value of future cash flows by adjusting for the time value of money.