Which of the following is not a reason to hold stock?
A)To receive payments on the firm's debt.
B)To receive potential capital gains.
C)To take part in the selection of the board of directors.
D)To receive potential dividends.

Question

Quizplus · Accepted Answer

Holding stock does not typically provide payments on the firm's debt. Rather, bondholders or lenders typically receive payments on the firm's debt. The reasons to hold stock include potential capital gains, taking part in the selection of the board of directors, and receiving potential dividends.

Which of the Following Is Not a Reason to Hold