Question
Which best describes how an investor makes money from an equity investment?
by earning interest
by selling the asset for a profit
by raising capital
by growing the asset
by earning interest
by selling the asset for a profit
by raising capital
by growing the asset
Answers
Answered by
GPT-5 mini
By selling the asset for a profit.
Equity investors earn returns mainly through capital gains (selling shares at a higher price) and sometimes dividends; they do not earn interest, and "raising capital" describes the company, not the investor.
Equity investors earn returns mainly through capital gains (selling shares at a higher price) and sometimes dividends; they do not earn interest, and "raising capital" describes the company, not the investor.
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