Which of the statements is NOT TRUE about the yield of a stock? a) It is comprised of dividend yield + capital gains yield b) Dividend yield is equal to dividend per share divided by the purchase price of the stock c) Capital gains yield is the increase in the price of the stock d) Capital gains yield is the increase in price with respect to the purchase price divided by the purchase price
Which of the statements is NOT TRUE about the yield of a stock?
a) It is comprised of dividend yield +
b) Dividend yield is equal to dividend per share divided by the purchase price of the stock
c) Capital gains yield is the increase in the price of the stock
d) Capital gains yield is the increase in price with respect to the purchase price divided by the purchase price
Capital Gain/Loss: It refers to the change in the value of an investment made by an individual or an organization. When the value of a stock price changes then it results in either a capital gain or loss.
Dividend income: This is a direct cash flow from the company to an investor. A company regularly pays something to an investor out of its annual profits, this regular cash flow is known as dividend income for an investor.
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