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Question 4 (Multiple Choice, Worth 4 points)

Which of the following describes a share of ownership in a corporation that represents a claim on a portion of that company's earnings?

A. Bond
B. Stock
C. Future
D. Mutual fund

Sagot :

GinnyAnsweridn
The correct answer for Question 4 is:

Stock

A stock represents a share of ownership in a corporation. When you own a stock, you essentially own a small part of that company and thus have a claim on a portion of the company's earnings. This differs from a bond, which is a type of debt instrument, and a future, which is a contractual agreement to buy or sell an asset in the future at a predetermined price. A mutual fund, on the other hand, is an investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
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