USA HISTORY

Detailed explanation-1: -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. Stocks are bought and sold predominantly on stock exchanges and are the foundation of many individual investors’ portfolios.

Detailed explanation-2: -Ownership of a public company is distributed among general public shareholders through the free trade of shares of stock on stock exchanges or over-the-counter (OTC) markets.

Detailed explanation-3: -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-4: -A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets.

Detailed explanation-5: -Investors purchase stocks in companies they think will go up in value. If that happens, the company’s stock increases in value as well. The stock can then be sold for a profit. When you own stock in a company, you are called a shareholder because you share in the company’s profits.