Question

Which of the following will be a source of cash flows for a shareholder of a certain​ stock? I. Sale of the shares at a future date II. The firm in which the shares are held paying out cash to shareholders in the form of dividends III. The firm in which the shares are held increasing the total number of shares outstanding through a stock split

Answer 1

Answer: Sales of shares at a future date and the firm in which the shares are held paying out cash to shareholders in the form of dividends.

Explanation: A share is a section of a company sold to the public individuals, the owner of a share in a company owns a section of the company proportionate to the amount of share the individual possesses.

A share can be sold and money recovered at the current market value of the share. That's a way share owner can recover cash from shares.