Question

Observe the image and identify its benefit.

Options

• Likely to enjoy higher return and considerable increase in the value of their shares.

• Short-term securities such as treasury bills and commercial paper are traded.

• Narrow variety of instruments are used to raise funds in the capital market.

• Are the main risk bearers.

Answer 1

Likely to enjoy higher return and considerable increase in the value of their shares.

Explanation:

Equity shareholders can enjoy higher returns and considerable capital appreciation through dividends and rising share prices, offering the potential for substantial long-term growth in the value of their investment compared with fixed‑income securities.