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Capital gains are profits made from the sale of an investment or asset, while dividends are payments made by a company to its shareholders from its earnings. In simple terms, capital gains come from selling something for more than you paid for it, while dividends are a share of a company's profits distributed to its shareholders.

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6mo ago

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Explain the difference between compounding and discounting and how they value the cash flows of the organization?

Compounding means that you are adding money to the capital. Discounting means that some of the cost is being taken away.


Can you explain how credit union dividends work?

Credit union dividends are similar to interest payments from a bank. When you deposit money in a credit union, you become a member and part owner. The credit union uses your deposits to make loans and investments. The profits earned from these activities are then shared with members in the form of dividends, which are a portion of the credit union's earnings. The more money you have deposited in the credit union, the more dividends you may receive.


How does capital asset pricing model help explain changing costs of capital?

It helps to explain the costs of capital by creating a model which intuitively understands the cost of capital as a function of a small number of well-understood economic variables, such as interest rate, demand, future discount, and capital stock.


Can you explain how mutual fund distributions work?

Mutual fund distributions are payments made to investors from the fund's earnings, such as dividends and capital gains. These distributions are typically paid out regularly, either in cash or through reinvestment in additional fund shares. Investors can choose to receive these distributions as income or reinvest them to potentially grow their investment further.


Explain the difference between formal and informal group?

Informal groups are not made by the management but get made on their own inside an organization because of constant interaction between members. Formal groups are groups with roles and responsibilities for those within, such as a church.

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