Dividends are the only way shareholders increase their wealth owning shares.

Question

Quizplus · Accepted Answer

Shareholders can also increase their wealth through capital appreciation, which is the increase in the value of the shares over time. This can occur if the company's stock price increases due to strong financial performance, favorable market conditions, or positive investor sentiment. Shareholders can then sell their shares at a higher price than what they paid for them, resulting in a profit.

Dividends Are the Only Way Shareholders Increase Their Wealth Owning