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How shareholders earn money?

Updated: 1/30/2023
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Wiki User

9y ago

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Shareholders earn money through:

Dividends: a portion of the company's profits paid to shareholders.

Capital appreciation: an increase in the value of a company's stock, which can result in profits for shareholders when they sell their stock.

Stock buybacks: when a company buys back its own shares, reducing the number of outstanding shares and increasing the value of remaining shares.

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Bhavan Kumar

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1y ago
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9y ago

Shareholders earn money by dividends and capital appreciation from owning shares.

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