BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Corporations offer investors a share of ownership in the corporation through
A
savings bonds
B
certificates of deposit
C
money market mutual funds
D
stock mutual funds
Explanation: 

Detailed explanation-1: -A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation.

Detailed explanation-2: -The stock market consists of exchanges where investors can buy and sell individual shares of a company.

Detailed explanation-3: -Companies issue stock shares to raise money in order to finance operational needs and to fuel growth, and investors buy those stock shares for the opportunity to generate a return on their investment.

Detailed explanation-4: -Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

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