BUISENESS MANAGEMENT
MARKETING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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stock
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partnership
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dividend
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liability
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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: -A share is a piece of the company an investor can own. A share is a unit of ownership (e.g., you own 10 shares), whereas stock is a measurement of equity (e.g., you own 10% of the company). Think of shares as a small portion of a company.
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: -An individual unit of stock is known as a share. For example, if you were to say, “I own stock in Apple (NASDAQ:AAPL), ” it tells us that you are invested in Apple stock and therefore own a small portion of the equity in the company.