Why income accruing from shares and debentures are not included while calculating national income of the country?

Dear Student,

Income from the sale of shares and debentures are not included in national income because the transfer of ownership of shares does not lead to any increase in the factor goods and services in the economy.
However, dividends received on shares is a part of corporate profits and thus, is included in national income of a country, while Interest received on debentures will be included in the national income as such interest received is a factor income because debenture is a sort of loan taken by a production unit.


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