A security is a tradable financial asset representing ownership, a creditor relationship, or another financial claim. Stocks and bonds are securities; investors monetize them through capital appreciation or passive income. section 1.2
Evaluate a security by considering:
- Risk tolerance, financial goals, and the time required to manage the strategy. section 1.2
- Liquidity, capital requirements, maintenance, and scalability compared with physical or non-fungible assets. section 1.2.9
- Income and price growth separately: dividends provide passive income, while selling above the purchase price creates a realized gain. section 1.2.1
Apple dividend comparison
In June 2025, Apple traded near $213.55 per share and paid roughly $0.26 quarterly, a dividend yield of about 0.49%. A 10-year US Treasury yield near 4.3% provided a useful comparison, showing why dividend income alone may not justify the stock’s risk. section 1.2.1
