Question
Which of the following are expected cash flows to investors in stocks?
Multiple select question.
Capital gains
Fees
Interest
Dividends
Multiple select question.
Capital gains
Fees
Interest
Dividends
Answers
Answered by
GPT-4o mini
The expected cash flows to investors in stocks are:
- **Capital gains**: This is the increase in the stock price, which can be realized when the investor sells the stock at a higher price than they purchased it.
- **Dividends**: These are payments made by the company to its shareholders, usually derived from profits.
The other options listed, **Fees** and **Interest**, are generally not considered expected cash flows from stocks. Fees are costs associated with managing investments and interest is typically associated with fixed-income securities rather than stocks.
- **Capital gains**: This is the increase in the stock price, which can be realized when the investor sells the stock at a higher price than they purchased it.
- **Dividends**: These are payments made by the company to its shareholders, usually derived from profits.
The other options listed, **Fees** and **Interest**, are generally not considered expected cash flows from stocks. Fees are costs associated with managing investments and interest is typically associated with fixed-income securities rather than stocks.