Please help me.
What are the primary reasons people choose to invest and trade stocks?
(Select all that apply.)
to earn capital gains***
to earn predictable quarterly interest
to earn a dividend***
to earn liquid money
Yes. Your answers are right.
Thanks, Ms. Sue, can you help me with another one?
Which is an example of an unsecured revolving loan?
student loan
credit card
auto loan***
home mortgage
I hate Sue so much I just can't stand her personality, but she does give me the answers so I love her like a daughter. I know I will never see this comment again so I'm sayn whatever I want ;)
To determine the primary reasons people choose to invest and trade stocks, we can look at the various benefits associated with stock market participation. The selected reasons usually include:
1. To earn capital gains: Many individuals invest in stocks with the goal of making a profit by selling the shares at a higher price than they initially purchased them. This is achieved through the rise in the stock's market value over time.
2. To earn a dividend: Some companies distribute a portion of their profits to stockholders in the form of dividends. Investors who hold shares in these companies can earn regular income in the form of these dividends, providing an additional incentive to invest in stocks.
3. To earn liquid money: While it is not the primary reason for most investors, trading stocks can provide an opportunity to convert investments into cash relatively quickly. However, it is important to note that the extent to which stocks can be quickly liquidated depends on market conditions and the liquidity of the specific stocks involved.
It is important to note that earning predictable quarterly interest is not a common reason for investing in stocks. Quarterly interest is more often associated with fixed-income investments such as bonds and certificates of deposit (CDs).