Identify the primary reason for investing in equity securities.

Question

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Answer 1

Question

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

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Answer 2

Question

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

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Answer 3

Question

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

Answer 6

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

Answer 7

Chapter D, Problem 1SSQ

To determine

Identify the primary reason for investing in equity securities.

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

a. Receiving dividend payments.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Equity securities are the common stock issued by the other company. Investing in those securities is referred as investing in equity securities.

a. Receiving dividend payments: for investing in the equity securities, the investor will get dividend. Receiving the dividends is one of the primary reasons for investing in equity securities. Hence, it is the correct option.

b. Acquiring debt of competing company: In equity investments, investor will get common stock (shares), not the debt securities like bonds and debentures. Hence, it is the incorrect option.

c. Earning interest revenue: the investor of equity securities will earn the dividend not the interest. Hence, it is incorrect option.

d. Deducting dividend payments for tax purposes: Divided payments are not allowed for deduction for tax purpose. Hence, it is incorrect option.

Answer 12

Ch. D - Prob. 1SSQ Ch. D - Prob. 2SSQ Ch. D - Prob. 3SSQ Ch. D - Prob. 4SSQ Ch. D - Prob. 5SSQ Ch. D - Prob. 6SSQ Ch. D - Prob. 7SSQ Ch. D - Prob. 8SSQ Ch. D - Prob. 1RQ Ch. D - Prob. 2RQ

Identify the primary reason for investing in equity securities.

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Identify the primary reason for investing in equity securities.

Answer to Problem 1SSQ

Explanation of Solution

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