Question

Which phrase best describes a capital gain? an increase in the amount of capital a firm uses in production an increase in the value of an asset an increase in the market price of a firm's output an increase in the productive capacity of a firm Which phrase best describes a dividend? the portion of earnings retained by the traded company the portion of capital gains realized from a stock split a portion of stock issuance reserved for executive compensation a portion of profits paid back to shareholders

Answer 1

An increase in the value of an asset

A portion of profits paid back to shareholders

Step-by-step explanation:

Capital gain can be defined as a rise in the value of a capital asset (which could be investment or real estate) that facilitates a higher worth than the original purchasing price.

Dividend can be defined as a distribution of profits by a certain corporation to its shareholders.