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The financial instrument that entitles the holder to receive dividend and capital gains is a?

Commerce
JAMB 2009

The financial instrument that entitles the holder to receive dividend and capital gains is a?

  • A. share
  • B. bond
  • C. bill of exchange
  • D. treasury bill
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Correct Answer: Option A
Explanation

Share capital is a financial instrument that allows its holders units of equity ownership in a corporation. Shareholders enjoy distribution in any residual profits, if any are declared, in the form of dividends. Shareholders may also enjoy capital gains if the value of the company rises.

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Post UTME Past Questions Agent
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WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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