suppose you buy a share for $100. at the end of one year the share price is $114 and a $1 dividend is paid. if you do not sell the share, your total annual return is . multiple choice question. 1% 15% 14% 0.93%

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26-10-2022
Business

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suppose you buy a share for $100. at the end of one year the share price is $114 and a $1 dividend is paid. if you do not sell the share, your total annual return is . multiple choice question. 1% 15% 14% 0.93%

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rafikiedu04 rafikiedu04 · Answer 1 · 2022-10-29T01:53:04-04:00

Suppose you buy a share of stock for $100. At the end of one year, the stock price is $114 and a $1 dividend is paid. If you do not sell the stock, your total annual return is 15%.

(1/100) + ((114-100)/100) = 15%

Shares, also known as stocks, are securities that represent partial ownership of the issuing company. A unit of stock is called a "share" and entitles the owner to a portion of the company's assets and profits equal to the shares held by the owner. Equity means a share of ownership in a company.

An example stock is 100 shares of Disney Corporation stock. Buying stock usually requires the help of a stockbroker, as you cannot call the exchange and ask them to buy the stock directly. When you use a stockbroker, whether it's a human or an online platform, you can choose which investments to buy or sell and how to trade them.

Learn more about stock here

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