BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Stocks are:
A
A share of ownership in a company
B
Organization pays interest to the lender
C
Form of lending to a company or the government
D
A specified time in the future when the principal amount of the bond is repaid to the bondholder
Explanation: 

Detailed explanation-1: -Definition: A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company’s share makes you a shareholder. Description: Stocks are of two types-common and preferred.

Detailed explanation-2: -Shares are units of equity ownership in a corporation. For some companies, shares exist as a financial asset providing for an equal distribution of any residual profits, if any are declared, in the form of dividends. Shareholders of a stock that pays no dividends do not participate in a distribution of profits.

Detailed explanation-3: -Stocks are financial securities that represent part-ownership in one or more companies. Upon buying a company’s stock, you become a shareholder of that company. The stock certificate serves as proof of ownership and mentions the number of stocks you hold. You can buy stocks of a single company or several companies.

Detailed explanation-4: -A stock represents a share in the ownership of a company, including a claim on the company’s earnings and assets. As such, stockholders are partial owners of the company. Fractional shares of stock also represent ownership of a company, but at a size smaller than a full share of common stock. Preferred stock.

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