What is the difference between a dividend and a capital gain.

A) A dividend is a distribution of profits to shareholders, while a capital gain is the increase in the value of an investment
B) A dividend is the increase in the value of an investment, while a capital gain is a distribution of profits to shareholders
C) A dividend is a distribution of profits to employees, while a capital gain is a distribution of profits to shareholders
D) A dividend is the increase in the value of an employee’s compensation package, while a capital gain is the increase in the value of an investment
Answer: A) A dividend is a distribution of profits to shareholders, while a capital gain is the increase in the value of an investment