Question

How to empirically prove that income number is useful to investor?

Answer 1

Income is the return to the investors from their investments. The main reason behind investment is to earn income. This income may be for short-term objective or for long-term objectives.

When the objective is short-term, the investor would sell the securities on earning any profits immediately But when the objective is long-term, the investor opt for holding the investment for continous income earnings from the investment.

Hence, whatever be the catagory of objective, the investor always looks at the income level for his present or proposed investment and makes appropriate decisions.

Hence, it is empirically proved that income number is useful for investor.