ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A loan an investor makes to a company or government that pays interest over time.
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A share of ownership in a company
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A collection of investments sold as a package.
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An option to purchase something in the future at todays price.
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Detailed explanation-1: -A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called “shares” which entitles the owner to a proportion of the corporation’s assets and profits equal to how much stock they own.
Detailed explanation-2: -Stock represents a share of ownership in a corporation. A bond is a security that represents a debt owed by the corporation to the bondholder, but does not include the ownership privileges of a stockholder.
Detailed explanation-3: -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-4: -Owning stock means being one of the owners of a company. Company owners are assigned ownership units called shares. The number and importance of shares an owner has depend on how soon and how much they invested in the company.
Detailed explanation-5: -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.