ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
When I purchase ____, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.
A
bonds
B
bills
C
notes
D
stock
Explanation: 

Detailed explanation-1: -Voting shares are shares of a company that entitle the shareholder to vote on key issues of the company.

Detailed explanation-2: -Key Takeaways Anyone who owns stock in a company has a voting right to the decisions that the company makes. The fewer shares someone owns, the less voting power they have. Voting has a significant impact on the price of the shares someone owns.

Detailed explanation-3: -Each member of a company that is limited by shares in adding up to holding equity share capital in that will have a right to vote on every resolution related to the company. The voting right on a poll will be in percentage of his share in the paid-up equity share capital associated with the company.

Detailed explanation-4: -Stockholder voting right allow shareholders of record in a company to vote on certain corporate actions, elect members to the board of directors, and approve issuing new securities or payment of dividends. Shareholders cast votes at a company’s annual meeting.

Detailed explanation-5: -Stocks are known as “equities” because each stock share represents a small percentage of ownership in the company, entitling the shareholder to vote in the election of directors and on other matters taken up at shareholder meetings or by proxy.

There is 1 question to complete.