ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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debt that the government or a corporation must repay to an investor
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a portion of ownership in a corporation
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a system that allows the transfer of funds between savers and borrowers
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a collection of financial assets
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Detailed explanation-1: -A share is the smallest denomination of a company’s stock. So, each unit of stock is a share, and each share of stock is equal to a piece of the company’s ownership. Suppose a person X owns ‘100 shares of ABC Inc. ‘ Now, if ABC Inc. has one lakh shares, it means X owns 0.1% of the company.
Detailed explanation-2: -Stocks and bonds are the staples of many investment portfolios. 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 represent equity ownership in a corporation or financial asset, owned by investors who exchange capital in return for these units. Common shares enable voting rights and possible returns through price appreciation and dividends.
Detailed explanation-4: -Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies.
Detailed explanation-5: - Stock: An equity security that represents the purchase of a share of ownership in a corporation by a shareholder.