What is the difference between a dividend and a capital gain?
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In the world of finance, think of a dividend as a regular paycheck from a company to its shareholders. It's like a little bonus they share with you, usually paid out of the company's profits. On the other hand, a capital gain is more like a bonus you get when selling something, like stocks, for a prRead more
In the world of finance, think of a dividend as a regular paycheck from a company to its shareholders. It’s like a little bonus they share with you, usually paid out of the company’s profits.
On the other hand, a capital gain is more like a bonus you get when selling something, like stocks, for a profit. It’s the increase in the value of your investment over time. So, dividends are like regular paychecks, while capital gains are the extra cash you make when selling an investment for more than you paid.
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