Question

Why do stocks have value? Because they pay dividends Because we can diversify to minimize risk...

Why do stocks have value?

Because they pay dividends

Because we can diversify to minimize risk and stocks could rise in value and generate capital gains.

Because history shows that stocks will rise over the long term.

All of these are reasons why stocks have value.

ANSWER B is not corret
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Answer #1
A stock that does not pay dividends has value because the
issuing company might decide to reinvest profits instead of
distributing them in the form of dividends.
Diversification does not mean that stocks have value. Diversificiation
is used to minimize risk. Diversification does not imply that stocks
have value.
Stocks have value:
Because history shows that stocks will rise over the long term.
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