ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
when you own stock, you also own a share of that company
A
true
B
false
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Stocks are an investment that means you own a share in the company that issued the stock.

Detailed explanation-2: -Stockholders own shares of a company, but the level of ownership may not present the benefits and responsibilities sought after. Most shareholders have no direct control over a company’s operations, although some have voting rights affording some authority, such as voting for the board of directors members.

Detailed explanation-3: -Shareholders, or stockholders, are the owners of a company’s outstanding shares, which represents a residual portion of the corporation’s assets and earnings as well as a percentage of the company’s voting power.

Detailed explanation-4: -Definition: ‘Stock’ represents the holder’s part-ownership in one or several companies. Meanwhile, ‘share’ refers to a single unit of ownership in a company. For example, if X has invested in stocks, it could mean that X has a portfolio of shares across different companies.

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