What are the two primary ways an investor can make money from a stock?

The correct choice highlights the two fundamental methods through which an investor can generate income from a stock. Dividends are payments made by a corporation to its shareholders, usually derived from profits. Investors can benefit from dividends regularly as long as they hold the stock. The second method involves selling the stock at a higher price than the original purchase price, thus realizing a capital gain. This is a core investment strategy where the investor takes advantage of market appreciation to earn profit from their investment.

Holding the stock for long periods can be beneficial, but it does not independently lead to earnings unless the stock appreciates in value or dividends are paid. Focusing solely on fear and uncertainty misses the positive aspects of investing, as these emotions can lead to poor decision-making and are not legitimate strategies for profit generation. The correct answer effectively encapsulates the primary ways investors capitalize on their stock investments.