Marshall wants to earn a regular income from stock investments to supp

QUESTION

Marshall wants to earn a regular income from stock investments to supplement his salary. Which of the following should he focus on in his research before buying any stocks?

A) book value
B) dividends
C) stock splits
D) par value
E) market value

ANSWER

Answer: B
Explanation: B) Dividends are part of a company’s profits that are distributed to shareholders, usually paid on a quarterly basis. Not all companies pay dividends on their stocks.