Question

type of return on ordinary shares investment and the rate of return

Answer 1

There are two types of return on investment for the stockholder or shareholder;

• Capital appreciation, in which one person buys a stock. And if in future the price rises then he took the profit and sell it to someone else or kept it with him for the long run.

• Dividend return, in which the quarterly payment is received by the holder on the share he holds.