WORLD HISTORY

HISTORY

THE INDUSTRIAL REVOLUTION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Stocks are
A
Shares in a business which means partial ownership
B
owning a whole business
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -A stock represents fractional ownership of equity in an organization. It is different from a bond, which operates like a loan made by creditors to the company in return for periodic payments. A company issues stock to raise capital from investors for new projects or to expand its business operations.

Detailed explanation-2: -Common stock represents a residual claim to a company’s ongoing and future profits. As such, shareholders are said to be part-owners in a company.

Detailed explanation-3: -Shares are part-ownership in a company, bonds are IOUs Simply put, when an investor buys shares they are buying part of a company; when they buy bonds, they are lending money to a company. Shareholders OWN part of a company whereas bondholders are OWED money by a company.

Detailed explanation-4: -Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are called “equities.” U.S. Securities and Exchange Commission.

There is 1 question to complete.