16
QuizMultiple Choice

Investing and Financial Markets

Question 16 • Personal Finance - EL3403

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

Answer
A
by earning interest
B
by selling the asset for a profit
C
by raising capital
D
by growing the asset

Explanation

An equity investment gives an investor ownership in an asset or company. The investor can make money by selling that ownership for more than they paid, realizing a profit. Earning interest is typically associated with lending or debt investments, not equity.

AI-written and checked against the verified answer.

Previous
Next