Brooke buys shares of stock in a small bakery in a foreign country in return for an ownership position and promised capital gains.This is an example of ________.
A)equity securities
B)debt financing
C)playing the stock market
D)investing in Euroequities

Question

Quizplus · Accepted Answer

Brooke is buying shares of stock in the bakery, which means she is purchasing equity securities. She will have an ownership position in the company and will potentially earn capital gains if the bakery's value increases. Debt financing would involve the bakery borrowing money from Brooke, which is not mentioned in the scenario. Playing the stock market and investing in Euroequities are too broad and not specific to the scenario given.

Brooke Buys Shares of Stock in a Small Bakery in a Foreign