which best describes how an investor makes money from an equity investment? by earning interest by selling…
which best describes how an investor makes money from an equity investment? by earning interest by selling the asset for a profit by raising capital by growing the asset
Answer
Brief Explanations:
Equity investment involves buying shares in a company. An investor makes money by selling those shares at a higher price than the purchase - price, which is selling the asset for a profit. Earning interest is more related to debt - based investments. Raising capital is what a company does, not how an investor makes money from an equity investment. Growing the asset is a long - term goal, but the actual money is made when the asset is sold at a profit.
Answer:
by selling the asset for a profit