Question

Which best describes how an investor makes money from an equity investment?

a. by earning interest
b. by selling the asset for a profit
c. by raising capital
d. by growing the asset

Answer 1

An investor makes money from an equity investment by selling the asset for a profit.

Step-by-step explanation:

An investor makes money from an equity investment by selling the asset for a profit.

When business owners choose financial capital sources, they can raise the financial capital they need to pay for their projects in four main ways:

1. From early-stage investors
2. By reinvesting profits
3. By borrowing through banks or bonds
4. By selling stock