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.
Compounding means that you are adding money to the capital. Discounting means that some of the cost is being taken away.
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.
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.
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.
Shareholders can make money by investing in a corporation through capital appreciation, where the value of their shares increases over time, allowing them to sell at a profit. Additionally, they may receive dividends, which are payments made from the corporation's profits. Conversely, shareholders can lose money if the company's performance declines, leading to a decrease in share value, or if the corporation faces financial difficulties that result in reduced or eliminated dividends. Overall, the financial performance of the corporation directly impacts the shareholders' returns on their investment.
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Describe is what it is and explain is why it is as it is
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Capital punishment ignores and denies admitting blame by the convict. See "Law and Order Criminal Intent" Season 4, Episode 3 "Want".
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Capital expenditure are those the benefits of which will be taken for more than one fiscal year while for revenue expenditure benefits are only for one fiscal year.