What are the main tools for seeking return on investment from equity?

The primary tools for seeking return on investment from equity focus on generating income through non-mandatory dividends and capital appreciation. Non-mandatory dividends refer to the discretionary payments made by a company to its shareholders. Unlike fixed income securities, dividends are not guaranteed and can fluctuate based on the company's profitability and board decisions, thus allowing companies flexibility in managing cash flow while rewarding shareholders.

Capital appreciation is the increase in the value of an asset over time, which is particularly relevant to equity investments. Investors purchase shares of companies with the expectation that the share price will rise, enabling them to sell their shares for a profit at a later date. This appreciation is driven by various factors, including the company's performance, market trends, and overall economic conditions.

The other choices align with different investment instruments and strategies. Guaranteed returns and fixed rates often pertain to bonds or other fixed-income investments, where returns are predictable. Mandatory dividends and loans typically do not apply directly to equity investments, as loan payments are obligations while dividends remain discretionary. Lastly, while sales revenue and asset sales relate to a company's operational performance, they are not direct tools for investors regarding equity returns, as these do not directly translate into shareholder returns unless they lead to dividends or boosted stock prices.