ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Shares of ownership in a corporation.
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Shares of trading in a corporation.
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Bonds with potential to make money.
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Bonds that are traded.
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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: -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: -The Definition of a Stock 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.
Detailed explanation-4: -Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.”