15
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 15 • Financial Literacy (WMHS) - Semester 1

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?

Answer
Y
Yes, the payment of dividends indicates that a stock’s value has increased.
N
No, the payment of dividends indicates that a company has earned profits.
Y
Yes, the payment of dividends indicates that a company’s assets have grown.
N
No, the payment of dividends indicates that a company can repay investors.
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